As the Euro ( EUR / USD ) & the British Pound ( GBP / USD ) are at above the 50% Fibonacci levels; it is ironic that a possible correction can be made against last week's continued strength on both major pairs as the US Dollar continued to drop at an orderly manner. Although Gold prices has also been seen correcting at this time which led a more supportive role for the USDX to advance at a much slower pace for its corrective move. Although some of the negative reports on earnings has already been discounted by the market; the relative lower volumes have made most majors move rather at a normal pace and the wild swings have been lesser.
The start of the week towards the end of the month have made it clear that the sentiments still remain bias for the bulls on the European market sessions. With that in mind, most traders are still keeping the existing positions long and may try to weather the corrective movements while they wait for a self-reinforcing market to continue it upward trend. Although, there is a glimpse of dark clouds forming on the higher price levels of the pound at the price above the 1.6680 and above where a possible selling divergence may occur as against the technical indicators other than being at the higher trading range of William's % Range with the combination of the Relative strength index. Any drawback on prices fro both Euro and Pound may be temporary and a preparation for the next upturn towards the end of the month and probably the spill-over sentiments on the first week of August with slight corrections along the way; if any.
The technical outlook still remains in the mid-range that the continuation for the Pound and the Euro is to move up. Expect some minor corrections along the way and not to panic whenever such price swings suddenly emerges every time the market makes its assault on the north upside area. Some momentum would still have to build up this towards the end of the month when other traders are simply covering their long positions against any sudden surprises. This goes for the rest of the major as well. Watch the first week of August if the bias sentiments would spill over to the next round of active trading.
The start of the week towards the end of the month have made it clear that the sentiments still remain bias for the bulls on the European market sessions. With that in mind, most traders are still keeping the existing positions long and may try to weather the corrective movements while they wait for a self-reinforcing market to continue it upward trend. Although, there is a glimpse of dark clouds forming on the higher price levels of the pound at the price above the 1.6680 and above where a possible selling divergence may occur as against the technical indicators other than being at the higher trading range of William's % Range with the combination of the Relative strength index. Any drawback on prices fro both Euro and Pound may be temporary and a preparation for the next upturn towards the end of the month and probably the spill-over sentiments on the first week of August with slight corrections along the way; if any.
The technical outlook still remains in the mid-range that the continuation for the Pound and the Euro is to move up. Expect some minor corrections along the way and not to panic whenever such price swings suddenly emerges every time the market makes its assault on the north upside area. Some momentum would still have to build up this towards the end of the month when other traders are simply covering their long positions against any sudden surprises. This goes for the rest of the major as well. Watch the first week of August if the bias sentiments would spill over to the next round of active trading.
Good Luck and Happy Trading!
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