Market snobs Moody's

What the market already knew would not have made a difference in the market place. In spite of the downgrading of Greece to junk category and Germany's exposure to the package plan that have been in the news for sometime have not created much for the Euro vs. the USD but rather held ground back to the 1.2305 levels from a low of 1.2160 to as high as 1.2312 for the current week ahead of the scheduled reports this Friday. This has somehow been a snob from the down grade report and has been expected.

Although, the Foreign currencies has been moving to where technical analyst have projected that certain corrections were indeed in the making since the entire fundamental reports on the Euro Zone has been quite negative for the past months or so. that a corrective move has left technicians to freely move within these parameters of correction. A mix sentiment has driven the market in both directions has the approaching 2nd quarter ending has also made traders in the interbank market make necessary trade adjustments.

The general trading range for most major pairs has been limited and the market has also been quite ideal for speculative traders scalping the market for some quick market plays which were quite predictable as it moves more on technical formations. Short-lived as it may be seen on their up -down directions yet the soft data from the reports has had little effect on the market as it waits for the more important ones to come before the end of the week.

A typical sustaining trade is the GBPUSD which has maintained its support at the 1.4350 from the previous low of 1.4229-50 range and is currently working at the 1.4815 which has been the corrective movement we mentioned after over a thousand pip range which also happens to be its behavioral pattern whenever it makes it major moves specially prenetrating a trendline resistance as seen on the chart. this also serves as a confirmation of the correction.

As the USDX has been in its corrective phase after touching its 87.78 high very close to our objective at 88.80 and currently working a the 86.45 bp levels. Until fresh incentives are made; the market would swing in both directions more technical until this Friday's reports.

Good Luck on your Trades!