USD Too Big to fail but not to fall

The continued bias of market sentiments for the US dollar has continued to fall despite of the efforts made in the APEC summit for emerging economies by the US government as represented by Treasury Secretary Timothy Geithner's remarks on the US policy of a stronger dollar.

The USDX has fallen to as low as 74.75 although, Fed Chairman Ben Bernanke's remarks that the Central Bank is monitoring the market's reaction towards the US Dollar movement. This led the GBP/USD and the EURO to continue its upward momentum at 1.6875 and 1.4968 respectively. The only concern is that the majors are showing some day to day selling divergences as the prices goes higher. The relative depreciating movements of the US Dollar is slowing down and cautiously waiting for some fresh incentives from the next reports.

Although, the most beneficial commodity was the GOLD prices leading to the USD1,143.29 high as volume and open interest increases as it goes higher. The well defined and reinforced trend of the US Dollar and Gold has been stable as long as price movements are firm and steady as they move on a day to day basis.

The GBP/CHF was a very good choice to trade from our previous market view report 25 and blog taking a long term position on the 1.6730/50 -1.6800 price range and the current working price as of this writing is 1.6980 with a high at 1.7011. Although, the trend potential has not been achieve yet but this may hold true for the rest of the week unless anything significant happens in the news.

Good Luck and Happy Trading !