Price Alignment

With the market holidays in Japan and Singapore, most investors and traders are reluctant to create new positions awaiting for the FOMC meeting on rates. Although, members are not expected to make any drastic actions and may simply hold rates unchange.

And some member countries of the G-20 meeting which been clamoring for some exchange rates adjustments as the balance of currency value has been mis-aligned ever since the financial crisis occured and the deteriorating US dollar for the past few years against the other major foreign currency pairs.

Although, the US Dollar Index is measured only among a few majors; it is apparent that such adjustments are made with the changing US trading partners worldwide including China and India who happens to be now major players in the world market.

So the market may experience some wider trading range since the market place has thin volumes which is susceptible to wild changes as seen on the opening in Europe and the US sessions particularly on the EUR/USD and the USD/CHF as a clear example.

Most analyst with the local broker-dealers offering FX dealing services have stated a firm report that with the bearish signal bar shown on the daily EUR/USD chart as a candlestick hammer signifying a downward expectation for the prices. The irony for that matter is that everyone have unanimously agreed that it will and the price direction in the US session simply did the opposite triggering some stop-loss orders. This normally happens when the consensus of the traders and the majority sees the same configuration on the computer screen without really looking in from outside the box.

A further analysis of the market can be found in our website at http://www.megatrade101.com/ > market view that will summarize some clearer currency to trade as a matter of choice. However, the market conditions may change before the actual reports on the FOMC and the US leading Indicators will show where the US Dollar index direction will try to dominate the financial market.

Good Luck and Happy Trading !