Asian Opening Session

As the Asian sessions opened with a soft touch on the US Dollar; due to the fact that the European Community's support through the International Monetary fund to assist Greece with a USD30B lifeline totality,

UK's more concerned on inflation issues but more importantly as we have been within the range of calling the corrective mode of the USDX as the US Stock market have seen the 11K DJIA index and most investors have been shifting positions from the USD. With this clear situation, volumes and open interest will build up for a continued rally for the weeks ahead. As long as the volumes would sustain its levels these will play a heavier toll as the EURUSD and the GBPUSD would be heading higher.

The leading commodities led by the precious metals would be the headliners as the continued directional movement touching and going beyond our expected target price of $1150.00/ oz. to US1164.80 high added to the bearish tone for the USDX as it closed at the 80.88 bp and may try to attempt a lower price below 80.00 which may be attainable if the volumes on the Stocks would increase in a dramatic fashion.

The AUDUSD opening with a gap on an intra-day basis at 0.9360 would only retrieve lower to fill in the gap. This would also hold true for the rest of the majors like the EURUSD and the GBPUSD. However, just be cautious as the higher openings would also have the tendency to close lower to make it appear as the price wise in a directional trend lower until the sellers would turn to buy in or simply to settle their previous positions specially for those who would have sold at the 1.5275 levels for the GBPUSD and the 1.3380 shorts for the EURUSD expecting the prices to continue heading lower. Expect some market capitulations to happen as prices would force earlier sellers to throw in the towel for having a small tolerance point and will price fluctuations would swing wider triggering some stop loss for retail speculative investors.

Good Luck and best to your trades!