Next-best - High Probability FX Trade

The investors sentiments and price behavior of the Forex market has undoubtedly been weighing more than any particular news that comes out. Not even the news of Osama bin Ladin death hardly had any effect on the USD as many have claimed that a recovery could be made as a welcome news. The irony of the matter is that the consistency of the US Dollar's weakness has not been really respected by some analyst. As they foresee an eventual end and may soon signal for a reversal.
Unfortunately, we still don't see any real circumstances that may provide such a reversal. True enough that the USDX has maintained its lower levels for quite some time now and registered a low at 72.80bp. A slight recovery back to the 73.20+/- would only be a technical adjustment that would equally be reflected with the rest of the major pairs.

Amongst the heavy players in the market are still the favored major financial institutions dominating the market, as reflected in the Commitment of Traders report. Nonetheless, speculative short positions by most retail traders have run into troubles for the past months especially on the European currencies particularly the Euro. Anticipating market trend reversals for the Euro and the USDJPY have been the norm for some of the reports and analysis from the broker-dealers and traders recommendations for a couple of months then. And now, the change of heart shows that most traders are eyeing on the 1.5100 levels.

We still maintain our position on the market analysis until such time that we do see an indication for changes or eventful changes that may transpire in the market. For the time being, the corrective moves on the GBPUSD gives enough breathing room for the cross rate EURGBP to move to its 2nd target objective at the 0.9020-9135 range levels. Although, Asian and European investors are shifting some positions and funds adjustments as some profit-taking has been made during Gold's corrective move back down to the USD1520.00/oz. levels. Next best move would be towards the Japanese Yen correlation with the British Pound as it makes is technical adjustment. Based on our process of elimination; the next-best probability trade to choose from would be the GBPJPY.

Visit our website: www.megatrade101.com for a complete report and market view analysis.