Defining the true colors of the Forex market will come within the week's reports starting of with Germany's Consumer Price Index, UK GDP, the US Consumer confidence figures, and of course the US Change in NFP, plus the unemployment figures for March. As the market searches for some fresh incentives to revitalize liquidity and volatility in the market place. As some investors and traders have been quite reluctant to create newer positions as adjustments in the closing for the 1st quarter draws this week's closing. Although, these reports are expected to be mix, apparently a friendlier USD reaction would be the norm as the 1st two weeks of the new month would be a pivotal point for the US dollar to recover. No real incentives are shown as of this writing except for the technicals that it is pointing to.
On the technical perspective, the market on the USDX is poised to recover simply based on it cyclical pattern for the second quarter of the year. Others may disagree, somehow the much anticipated recovery would only be seen after the fact. Prevailing USDX price level is currently at the 76.29 from a low of 75.25 basis point. The key price to follow and keep a watchful eye on is the 77.05 1st resistance levels followed with the 78.05-35 range; a significant recovery from its previous low would only mean that there is enough room to rally. The only visible evidence would be an increase in volumes and funds flow out of the Gold and commodities markets. A convincing shift of market sentiments may prove to provide some legs for the USD to recover with the backing of some fresh fundamentals coming from investors sentiments.
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