Market Wire Update:
Price Action Expected Going Forward
Trader Note:
The major pairs held within their previous session highs or lows in trade on Friday, and until the market shows the ability to break and hold those price points, the near-term moves seem rather noisy. The daily chart closes on Friday offered the chance to see if this is a swing point on the dollar; something that certainly looks to have potential now that the dust has settled. We will be looking for the near-term long-Usd trend to reverse, and start to monitor momentum as this potential swing point unfolds.
There may be plenty of price action on Sunday/Monday, with a relatively clear economic calendar. We are looking at long Aud/Usd (growth and interest rate differentials), looking at the chance to buy Usd/Jpy on the pull-back (interest rate differentials), long Eur/Usd (risk tolerance in equity and Treasury markets). We will post signal updates just after the 17:00 EST Sunday open.
Macro View:
The 4 Hour chart reviews are still showing long-Usd trend reads overall, but are showing short-Usd global driver reads. Something has to give, and Friday’s price action suggests that the first swing change in forex since 4th December 2009 may be ahead of us. It will take one session to set, and then the market will have revealed the pairs that are ready to make some moves.
TheLFB Trade Plan of the Day is one of the six that are available to members on the major pairs each day, plus four Jpy based cross pairs, as well as S&P futures, oil, gold, and the dollar index.
