Asia Opens with a 'Trading Price Gap'

Although, the American trading session on the NFP and Jobs figures were the catalyst for fueling the USD rally; the Asian opening trading have resulted with price gaps particularly for the EURUSD, USDCHF, USDJPY and a couple of crosses the likes of GBPJPY including the EURGBP. The USDX is no exemption as this would tapper-off some daily gains from the previous closing last Friday. However, defining an exhaustion or continuation price gaps would depend on the succeeding and sustaining price action in the next few trading days. The highlights of last week's figures would continue to dominate investors sentiments that would push a favorable rally for the USD after its correction.

EURUSD DAILY

Daily corrective pullbacks are expected in-between trading sessions. The backdrop of market sentiments between the US and the European markets would still remain subdued and negative bias for the Euro until such time in the 1st quarter of the year. As for the EURUSD touching its initial support extensions at 1.2660/80 whereas, the normal 1st reaction for a self-corrective price to go higher is being set-up at the Asian opening towards the European trading sessions. This goes the same with the EURGBP cross and the GBPUSD. Meanwhile, North American traders would wait-it-out for further price action before making any market move at the start of the week where an expected spill over from last week's USD rally would pick-up. For a complete trading report and charting analysis including the USDCHF pair, please visit our website at:  http://www.megatrade11.com/

Moving forward, we do expect increase trading volatility and market action towards the 3rd trading week of this month. The continuation of the rally would have to start building-up after such corrective move along side the European majors. Foreseen to be short lived would really depend on the follow through volumes of market sentiments by major institutions. As retail speculative trades will always be out-paced by major forex hedgers and speculative institutional bank players in terms of volume transactions.