There are some technical rumblings that reveal a short reversal in recent direction may happen, as global markets look for justification in taking out 2010 highs. That move would lead to some near-term Usd buying, and would be into short Usd near-term trends. This swing point may get messy as market participants decide where fair value on risk is. Daily charts are still long-Usd, 4 Hour charts are short-Usd. We will monitor and signal as it unfolds.
Near-Term Price Points- Eur/Usd reversal around 1.3790. Gbp/Usd reversal around 1.5180. Aud/Usd reversal around 0.9190. Usd/Cad reversal from 1.0210. Usd/Chf reversal from 1.0600. Usd/Jpy reversal from 90.10.
Global Markets- Commodity markets are weak, as Asian, European, and U.S. equities form Doji (reversal) candles on the daily charts. These moves may set up a near-term technical reversal (long-Usd).
Forex Momentum Times- 8-9pm, 2-3am, 6-7am ET. Outside of these, look for near-term Swing Point trades.
Dollar Index
The Usd has moved all over the charts as fair value on risk is savagely contested. As much as the U.S. leads potential growth, the debt issue and employment questions are definitely impeding a substantial break-and-hold on the Usd. Global risk valuations are dominated by the best-of-the-worst scenarios, and seen each day around the red flag economic release reactions. Momentum is strong. Favor a straddle (Long and Short near term plays).
S&P Futures
S&P futures tested the 1150.00 area in recent cash trade, the highest value reached since September 08. Holding near term support will denote a strong bullish outlook, especially now that the equity market has pushed higher while lacking any fundamental triggers. Momentum is building. Momentum is building. 12-month 96% correlation to Aud and Cad moves. Favor a pull-back to support.
Crude Oil
There are important questions regarding the outlook of crude oil. The current view is that the global economy may come to a standstill pace going forward, which does not leave too much upside room for the commodity industry. 12-month 95% correlation to Aud and Cad moves. Favor a pull-back to support.
Gold Bullion
Gold has lacked a direction and trading bias for a few weeks now, and will probably continue to trade in the sideways pattern. Gold is usually driven by the market's aversion to risk, something that is hard to value right now. Prepare for sporadic, intra-day moves. The next important support area is at $1075.00.Favor a straddle.
Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com
TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.
The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.
About the Author
Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com
TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.
The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.
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