Finally USD Recovery!

As the much awaited USD recovery is in the making from the Asian trading heading towards the European and North American session. On the technical stand-point, using the candlestick bar on the weekly charts of the USDX closing at 77.05bp which signified a spinning top or some may call it a long legged-doji bar especially with a slightly higher opening for the week at 77.36 giving enough momentum to continue at the 77.45bp as of this writing.

With that said, both the EURUSD and the GBPUSD had moved lower at the 1.3870 and 1.5877 respectively for the pairs. This is normally the case where such technical moves are based simply from the reaction of an over-extended rally from the past four weeks. However, the said rally was done in a slow yet gradual manner where we found some drawbacks on the prices making the higher lows on the way up. Our objective from the last market view analysis have touched the range of 1.4120-80 dated the 14th of October, 2010 where the correction now is being made. The same could be said with the GBPUSD. However, a price reversal is made but not necessarily a trend reversal. The near-term correction is true to its movements amongst the major pairs; how far they go lower would depend on a daily price behavior.

Please visit our website for an in depth analysis mid-week in anticipation of this week's price movements.