Indecisive Market or Trader's reluctance to trade

With the market being quiet and waiting for the FOMC meeting, the delayed Fed report on currencies, China's Hu Jintao visit to the United States, the labor data for the week has led market participants to be indecisive of what to do in spite of the closing numbers last week for an economic recovery. And most especially the closing dollar's significant higher close for the 1st quarter of the year.

As we have recalled the mix sentiments of reports but still maintaining our stance of a higher closing has led the USDJPY take the lead for the currencies. Although, the Loonie or the Canadian dollar close to parity prices have been in the limelight for the beginning of the weeks and the first trading of the 2nd quarter.

To choose which of the major pairs and cross rates to trade has been the next 60K USD question mark. But it is very obvious that the market traders were waiting for a spillover of last week's numbers on the currency market. However, the stocks and the Bond market and the commodities market led by copper has been taking the lead over the recent trading sessions. The precious metals will lead the commodities market for the time being. Gold prices may attempt to lead the next high as the USD may take a shorter breather by the middle of the week and the succeeding week thereafter. Which is in part of the correction that we have anticipated due to the cyclical pattern we have mentioned last December. In one of our articles written that the correction on the USDX will begin on the 7th of April 2010. If and whenever this hold true other than the reports due this week may eventually support that outlook.

From our last market view dated the 23rd of March the USDJPY would lead the way upwards from our current long position of 92.69 on March 29 Monday before the closing of the month. As of this writing the USDJPY is working at 94.39 from a high of 94.58 initial resistance levels. And the CHFJPY topping at the 89.97 and currently at 88.83 has been a huge profit potential from our previous position at 85.28 last March 23.

These positions and summary of trades has been presented and supported in our FX video attached on our market view analysis since February 25. However, there is still no guarantee that the same results would occur in the near future as prices fluctuate in extreme conditions.

For now, the Aussie and the Canadian Dollar may slowly gain ground with the expected correction on the USDX this coming weeks ahead. Although, some would disagree with our views as they are still expecting the rise on the USDJPY after a correction downwards. But by that time we would be settling our current position and would only looking at the next trading profit potential.

Good Luck and best to your trades for the weeks ahead!