On Current Market Conditions:
After trading higher for the past few weeks, the stock market's ability to gain more ground has been dampened by investor's lackluster trading activities due to uncertainty and unclear market's direction. Alongside several reasons of the ECB's unconfirmed increase of unlimited Bond purchasing program and the Bundesbank's undoubtedly in disagreement to this program have curtailed the market's ability for the Euro to regain footing above its current price of 1.2350 level.
After trading higher for the past few weeks, the stock market's ability to gain more ground has been dampened by investor's lackluster trading activities due to uncertainty and unclear market's direction. Alongside several reasons of the ECB's unconfirmed increase of unlimited Bond purchasing program and the Bundesbank's undoubtedly in disagreement to this program have curtailed the market's ability for the Euro to regain footing above its current price of 1.2350 level.
With that said, trading interest likewise have been low with volumes at its lowest levels for the second half of the year and the market's sluggish price action particularly this week's trading in the foreign exchange market. Unwinding market position's with the US Dollar based-trading on the latest COT report have only provided a small glimpse without any real market direction to base a considerable trade to start with. Although, there are some technical market consideration being set-up in the closing month's trading may well be taking place prior to a dramatic price action. This is where the ability to 'spot a potential trade' before any market price action could take place is vital in any trading decision especially in the forex market.
With current prices and market behavior in check; cross rates are still the prefered pairs to trade with a few exceptions the likes of Cable, Swissie & Aussie pairs that has a more direct correlation with the US Dollar at this particular trading period. However, the Aussie has had its run since June with a daily corrective move lower for the past week; while Cable likewise would still have some room to move higher. As these pairs are quite successful in covering its mark & directional trend behind the Euro being in the limelight. Meanwhile both currency pairs creates a daily market squeeze with a spill-over reaction with the EURGBP cross rate. But once such moves have been defined we would see a breakout from the European pairs higher.
Please continue....
With current prices and market behavior in check; cross rates are still the prefered pairs to trade with a few exceptions the likes of Cable, Swissie & Aussie pairs that has a more direct correlation with the US Dollar at this particular trading period. However, the Aussie has had its run since June with a daily corrective move lower for the past week; while Cable likewise would still have some room to move higher. As these pairs are quite successful in covering its mark & directional trend behind the Euro being in the limelight. Meanwhile both currency pairs creates a daily market squeeze with a spill-over reaction with the EURGBP cross rate. But once such moves have been defined we would see a breakout from the European pairs higher.
Please continue....
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