Corrective Moves Expected

The USDX will naturally experience some corrective movements on a daily basis since the consolidation for the past few days shows how the USDX have moved due to the GDP economic numbers which were better than expected of 3.5. However, the anticipated upward movement was made ahead of the market report which led the US dollar to correct after the the release.

It was obvious that the dollar's upward direction has been much awaited as we have reported the past week. Although, the corrections on the GBP/USD and the EUR/USD have been slightly over due. As the corrective moves on most majors goes hand in hand with the cyclical pattern of price adjustments towards the closing and opening of each month as we have seen this month.

However, on the opening of the month of November, the dollar's decline on a daily basis will be made as the consolidation between the 76.80 - 74.90 ranges will be the trading range from now till the end of the this month. Although, we do expect that if any favorable numbers on the economy will show more proof of the recovery ; we would see the USDX move back higher. As the US Dollar has been the key element in market trend directions against the other majors, we would be closely monitoring the Dollar's movement more tha the other.

The USD/JPY may also provide some direction of the market. Although, its influence may be quite limited at this time since the most investors have shifted their cash capital investments into Gold commodity. The Euro may still continue to hold its ground versus the British Pound but the EUR/GBP cross rate may still head lower as the GBP/USD consolidates on a day to day basis.

Good Luck and Happy Trading !