Follow-Up Market Analysis as of 9.27

Listed below are significant issues that best describes the Forex market on our perspective:
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* Based from our USDX 09.19 market view, the US dollar index met its initial R1/R2 at the 78.08 / 78.85. A wider price swing is expected in both directions as it makes its way back higher with increasing volatility ahead of the end of the month position adjustments. However, we do expect a ladder-like upswing for the US dollar moving forward to complete its second daily leg higher to the 81.10 or better in spite of the mix reports for the US economy.
* The precious metal's corrective and dramatic move lower down to the 1532.59 liquidation levels with increased volumes have met renewed exchange / arbitrary position adjustments from Euro denominated Gold positions to flight to quality US dollar denominated assets. This also prompted US Stocks to change in both directions in spite of some mix reports also coming from the Euro zone. Although, a price and trend reversal had been previously called the USD1510/50 range is an established support for the time being. 
* Euro zone's relentless efforts of perking the deteriorating EURUSD would have a lifeline of relief efforts European leaders in supporting the Debt crisis as the Euro's short stemmed recovery may prove to be just a mid-week effort to support it. A further extension would have prompted an all important price level of 1.3180 which was a striking distance from its previous low of 1.3361 extension that met some short-covering from efforts made by Germany's Angela Merkell. On a technical perspective though, the 1.3350 support price seems to be holding a fresh incentives from that effort brought about some slightly bullish players in the market. As the chart formation shows a parallel channel support at the said price levels. And a daily buying divergence occurred at these levels while it was moving lower. Do not discount the probability of a return to the lower prices for the next few days prior to the end of the month. Otherwise, any move higher would only be a corrective mode as the continuing pattern of bearishness still prevails in the market sentiments.