With the short trading week for some traders towards the Easter Holiday celebration especially in Asia; the sustaining view for the USD is highlighted from the expected FOMC minutes. But more importantly would be the ECB rate decision, the NFP and unemployment report this coming Friday. Inspite of the disappointing Tanken report; the main currency leader has been the Japanese Yen gaining strength versus the USD. The USDJPY managed to move lower at 81.52 while it influenced the GBPJPY & EURJPY likewise moving down to the 130.74 and 108.62 levels of support the first trading day of the 2nd quarter of the year. These are the best levels so far for a one day move where an expected recovery would be made during the new opening sessions towards the European & US Trading sessions.
The majors are more susceptible towards the fundamental side of trading rather than the technicals. We are still leaning towards a neutral to bearish sentiment of the US Dollar within this period. With a consolidation pattern establishing a base and wider price fluctuation within the week likewise the next three tradings days of the week after. Volatility will be the main focus of the trading sessions as the mid-week for the month of April starts.
The EURUSD would dictate the same volatility with the EURGBP cross rate as it attempts the 0.8290 low and 0.8360 trading band to trade with a wide price range on a day to day basis. However, the bias market sentiment still remains bullish with contrary market analysis for those traders who still remain bearish for the overall trend lower for the Euro. The pressure is intact for bear USD traders and continued short covering plus market capitulations for bear traders position holding until now.
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