The signals derived from the Price Page Indicator that has again proven its reliability from where the basis of the trade positions had taken shape even before the remarks from the ECB holding rates unchanged came about. The so called rumor from Greece's intentions of pulling out from the Euro currency really had no bearing except that it was highlighted by some analyst to justify the market's movement. There are apparently more real factors that contributed to the dramatic drop that was not expected as it accelerated its downward momentum during the closing of last week's movement.
We still maintain our current position to on both cross rates; GBPJPY & EURJPY to gain momentum on its downward direction for the week. Although, some conflicting signals would occur within the major trend. The near term movements would react with more volatility and wide price fluctuations as major institutions would simply eliminate small speculative investors from the market. A convincing follow-through price momentum towards the upcoming Consumer Price Index (CPI) and the University of Michigan's Confidence figure would more likely be mixed but would also have a friendlier net effect for the USDX in the long run. Then this would reaffirm and gain more interest for US Dollar bulls.
The news of S&P's downgrade for Greece & Portugal's contagion effects looming in the air has taken the highlights on the news. Not to mention the debt and trade deficits of what the US is facing is a battle cry for every trader's choices as to what the direction of the market would be in the coming trading days. After a Euphoria market, chaos and confusion on market directions takes place. This is where market psychology takes into account the market behavior from past experience in trading these volatile market.
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