Quote:
Originally Posted by CodyB
There is less volatility on positive equity days, and that signals that long-dollar positions are near-term hedges, rather than long-term plays. The fact that a currency cannot make a break on the dollar that holds unless equity markets are trading in the green reveals a fear of loss syndrome at the moment.
Making a clean break has been hard for the market to do for six weeks now, as we can see from the channeling 4 hour charts. The target areas cannot be too far away; global equity trade is finding it hard to hold intra-day direction from one region to another, allowing the bigger reversals from tests of support and resistance to take place.
Making use of momentum at 20:00 EDT, 02:00 EDT, and 07:00 EDT is key to getting a clean break, and subsequent price action. The key to an improved forex order flow of momentum and volume to smooth out the heavy reversals will come with a market that starts to buy equities. Until then, the battle each day to buy dollars and Treasuries as an equity hedge will take place.
The Reserve Bank of Australia's interest rate decision is posted at 00:30 EDT, and the effect on the aussie will ripple through the other major pairs at that time.
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Cody,
good to talk to you agian, do not forget we are in july, real traders are not there to move the market...but the few out there with deep pockets can benefit from unexpected moves that they can create....today there was no reason for that reverse (not questioning the market...) specially the last 15 minutes....when DOW jump 40 points in one bar...Friday is key....until then,...no logic behind the moves...just like last friday when longs (believers) got smacked across the face with the NFP number.
it is a range trading till then...tonight Asian session is shaping up to be another run to next resistance 1.4040...then re-evaluate
of course you are more experienced than me...but the asian session is only 1 and half hour to go...will see
