Mid-Week Analysis

A follow-up analysis for the mid-week as made it all clear for the strengthening European Majors to maintain their higher levels with a few minor corrections along the way. The probability of getting a mix reports from the Jobless claims and the NFP may make the Forex market vulnerable, as the volatility index have increased. Although, we have seen some traders and investors heading for the exit as risk appetite and aversion from investors has been uncertain. Catching a trade on the way up for some traders have declined while scalping opportunities for others are increasingly present for retail investors and traders. However, there should be a word of caution has wider swings are expected as we head towards the closing of the week's trading.

From our previous market view analysis, both pairs for the Euro and Pound came true to their form of continuing their trend higher. Which would continue after a minor corrective move would be in the making. The bullish players apparently still holding the current positions may not allow this but will show some significant trade swings in prices that would be a sign for false signals heading in both directions.

The GBPUSD's mid-week high was close to our initial target of 1.5988; a 21Mo-MA on a weekly chart analysis at the 1.5962/66 and currently making a slight corrective move as of this writing. This has been clearly identified with our market analysis on the closing of the month of July report and a speculative outlook as well.

The same held true with the EURUSD with a high of 1.3261 and currently at 1.3196. So expectations are still intact for now while the market awaits the market reports this coming Friday. But the news however they may turn as we have been contemplating on a mixture but the overwhelming market would still prevail with the USD heading south. the opening gaps of the majors have been quite influential on a technically motivated market fueled by negative sentiment by investors.

Meanwhile, the USJPY has turned towards it previous low of 85.31 and is re-attempting its old low at 84.79 which should not be discounted for now. The old contrary movement of the USDCHF is present as most European participants are weary of an SNB sudden movements from the backdoor and some analyst persistence of speculating a BOJ intervention that may not even happen. As some traders may not be aware of the current policy stance of BOJ as far as intervening in the Forex market directly.

While the NZDUSD may have more potential of continuing its trend as it has more leg room to do so. And the AUDUSD may also meet some resistance moving forward , but apparently will still be moving forward with its major trend direction.

A word of caution would be to have enough room for tolerance and the appropriate amount to accompany any trades and position for proper cushion and hedging purposes. These kind of market conditions may not really be appropriate for some retail investors as trade stops would easily be triggered. Although, when a trade is profitable , simply take it and run. Its always good and healthy to stay ahead of the market and wait for the next good signal.

Pls. do not be an ' eager beaver '