GBP plus EURO vs.USD

Certainly the market has gotten most traders and investors surprised with the strength of the European majors to take the market's highlights. As the week started in Europe with the manufacturing data as presented by the final Euro Zone PMI manufacturing index and the United Kingdom were better than most have expected; touching a 56.7 high for the month of July. it has been the best performance for the past three months of the year.

These news were enough to add the fuel to boost both the EURO and the POUND higher against the weakening US Dollar. And to top it all, the opening prices of most of the major pairs had opened mostly with a gap from their previous closing prices of last week that ignited most of the bullish technicians to further their advance towards the American sessions.

And to top in all, the USDX upon the North American session also opened with a gap that added more volatility downwards for the ailing US dollar compared with the rest of the currency pairs.

Currently, the USDX is at the 80.95 levels which would still stretch lower as the European pairs are taking the lead in the forex market. With the EURUSD at 1.3187 and 1.5893 for the GBPUSD as of this writing have already shown the intense momentum as the market moves forward. the technical signals were already present during the closing sessions of last Friday. As we were more closely relating our focus on the GBPUSD in our closing report " On the Spot . . GBPUSD " which could be found in our website at http://www.megatrade101.com/ dated the 30th day of July. Likewise we have mentioned from this previous market view that the target price levels for the GBPUSD is 1.5988 closest to its moving averages for the past weeks.

Meanwhile, the continuing advances of the AUDUSD and the NZDUSD currently at 0.9133 and 0.7329 never failed to amaze us. The volumes and open interest even on the financial futures have increase during the course of the month in July which has doubled towards the weeks heading the end of the month. Therefore, we still hold our stand until any newer developments occur or may arise in the next few days. As the NFP may also affect the behavior of the market participants toward the release of this weeks reports as well.

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