Market's Reaction on Bernanke

The closely watched speech delivered by Fed Chairman Ben Bernanke has made the market react with some of the majors but more influential on the cross rate as some of the spread bets were simply between the USDCAD, USDNZD, USDJPY and the AUDJPY in particular. It took some time for the market's reaction as most analyst digested the speech made and what it means for the USD and the economy.

However, the technical expectations that we have presented in our most recent FX video presentation has proven well for the USDJPY as it moved higher from a low of 83.57 and currently at the 85.35 levels. The weekly and monthly chart divergences on the lower band of the prices have finally made it rally today, but more importantly watch for the sustaining market reaction as we are nearing the closing of the month. Where position adjusting and liquidations would be expected prompting some more volatility moving forward by mid-week towards the new trading month of September overlapping with the closing of the month of August. The next three days of next week would justify a continuing pattern of corrective movements that may cover the previous strength of the USD by moving lower as we have mentioned in our market view report dated the 23rd of August.

Pls. visit our FX video presentation as it defines the 6 major pairs-Live Highlight on the USDJPY, USDNZD & USDCAD; before the market reacted today on Bernanke's speech at http://youtube.com/megatrade101