The market's price volatility on giving back its gains and losses has been the norm for the past several weeks with an average true range of about 120-150 pips on both directions of the market periodically done on a daily basis. As this also has been the trademark of institutional players dominating the market place.Apparently, as seen on the corrective move on the US dollar Index touching a key point resistance price level of 74.80/90 basis point; have retreated back down to the current 74.40 corrective move. However, a second attempt would not be discounted on the next leg up as it gains momentum from position adjustments and fresh incentives for the coming week. Timing is obviously important. However, a struggle between bullish & bearish players between hedge funds and institutional banks has been dominant in the market place with a small percentage of speculative players barely surviving the wide trading range for the past week.
As the the USDX moved higher the previous week have pushed some forced liquidations from sellers turned bullish players of the EURO as the prices turned around reaching the 1.4321 from the previous registered high of 1.4695. currently, the EURUSD has turned around back up towards the 1.4458 as of this writing. And subsequently with the GBPUSD at the 1.6429.
The lack of synchronize trading price levels from the rest of the other major pairs have led to this correction while rebuilding the momentum for a follow-through in volumes have diminished open interest to increase. Unless some fresh incentives would lend to support the recent upward US Dollar rally then the obvius retreat would still maintain. Although, we would be watching price and market behavior more closely for any signals that may state otherwise.
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