With the USD Index trading its weakest range for the past week with barely a high registered at 82.87 and a low at 82.04 have stalled again after a corrective move for the past two weeks from July 25 to the current price working at 82.55 mid-range level.
This was primarily due to the low interest of fundamental as well as any political reports that could seriously drive both the Euro and USD in any real direction. Which has kept the Euro at bay at the present levels of 1.2280-1.2300 price range at the start of the Monday trading in Asia and Europe. However, GDP reports in Germany, EU Zone including the Great Britain's Consumer Price Index; followed by the BOE minutes may add some early price action by middle of the week. The succeeding news reports in between Friday's US Michigan Confidence numbers may help turn the tables around from any directional price action brought about at the middle of the Wednesday results.
But the psychology of market price action and its behavior is still relevant to the growing decrease of speculative participants after the market squeeze experienced last Wednesday & Thursday's volatile up and down swings that have caused some USD short-covering on Aug 02 & a counter-trend reaction of market liquidation on Aug 03. Where a lot of speculative positions were caught flat-footed of such reaction.
Although, we have provided a signal in our market view report of the eminent price move dated the July 30-Aug 01, 2012 that has led to a market squeeze which we have experienced from those two consecutive days of counter trend price movement in both directions.
The consolidation of price swings ...pls. continue
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