The USD has indeed reacted with the favorable reports on the NFP / jobs figures last week by continuing to move higher and touching its objective at the 80.05 from the low double bottom price of 7/8.09/10 levels.
Now that USDx 2nd bottom has been defined as a higher low for the USD. Of course, otherwise contradicted with another bearish fundamental along the way is another story.
The USD is on its way up with some daily pullbacks as shown on the opening week of March 12. The daily chart formation is neutral to bearish in the near term for the US Dollar. As it is being influenced by the Euro which somehow have curved a bottom low at the 1.3077 but not lower than the previous 1.3025 that served as the crucial support for the EURUSD at this writing. Please refer to our current market conditions where we have described the behavioral pattern and correlation movements of the USDx, EURUSD, GBPUSD and the EURGBP cross rate.
The importance of knowing this significant behavior is in relation to the succeeding patterns and set-ups that would arise in the weeks to come. We are towards the end of the 1st quarter of the year and the opening of the new 2nd quarter month of April. Now, if the cyclical pattern of this behavior would be followed from historical prices; the turning point for the USD would come between the first two weeks of April.
While the Euro's recovery would prove enough confidence in the market, where it has avoided a disorderly default of Greece somehow have settled down. There maybe some dark clouds looming in the air as far as oil prices are concerned, that would add pressure for the inflation numbers may well affect the precious metals for now. Pls. continue http://megatrade101.com/
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