FOREX:Trend Following EUR-GBP-USDx & crosses

Weighing fundamental factors now will define risk, volatility and market sentiments by investor / traders in the foreign exchange and stock markets respectively. Not withstanding the other equally important highlights but the most crucial reports amongst them not necessarily in its order, obviously are the final countdown on the Greece debt crisis, the Politically sensitive effects on Iran with the oil markets that would have a direct impact with the US dollar, commodity prices and the current market outlook for the precious metals. 

With that said, our stand on these issues would outweigh majority of the market's ability to define its directional price movements for the next trading sessions towards the closing days of the month of February. Although, we still remain with the same market outlook as a matter of following these series of events and market directional prices movements when we have called them based from our market view analysis since the end of January 2012.

A corrective move for the USD no higher than the trading range between 79.50 to 81.05/10 basis point and a trend continuing price level moving lower thereafter. Currently, working at the 79.05 while corresponding price for the EURUSD at 1.3227, opening higher at 1.3220 from last Friday's closing at 1.3155 which is a gap price of 65 pips as a market reaction from the current news wires for Greece before the European opening since today in the US we are celebrating President's day holiday as well.

Meanwhile, the GBPUSD has indeed held true towards the previous week's corrective movements alongside the Euro which led a change or hands and position shifting by some as the market has traded with a wider price fluctuation. Currently at 1.5842 filling in the daily opening gap levels in Asia have supported the EURGBP cross well above the key support levels of 0.8290-0.8305 levels. The markets ability to trade and gained back it corrective move have caused a lot so short-covering and stop loss on both sides of the market. Traders who held shorts on the way up towards the 1.5880 and 1.3320 respectively have lost unfortunately entries to buy then suffered while both majors corrected lower at 1.5640 and 1.2968 lows from the prior week.
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