The anticipated onslaught of hurricane Sandy in the eastern seaboard of the US; the New York stock exchange would be closed on Monday & likely be the same on Tues. Severe weather conditions would dampen trading volumes for the week ahead making thin market conditions susceptible to wider price swings in both directions.
The upcoming US reports would still be released that would take the European market the leading market movers along side with the Asian trading sessions. US Consumer confidence scheduled on Tues expected to be favoring the USD and the ISM manufacturing numbers followed thereafter on Wednesday would take the earlier lead for market direction prior to the Non-Farm Payrolls & unemployment figures for October by the end of the trading week.
The recent USDx breakout above the 80.05 have sustained in a gradual pace versus the Euro and Cable as increase short-covering by huge speculative positions / traders have started to unwind before the end of the month's trading adjustments. A confirmation from the USDx congestion range of 78.60 low compared to its 80.27 high would weigh heavy by a confirmation of any favorable than expected report for the week. Extensions would be viewed at above the 80.45 - 81.00 basis point when it decides to make a follow-through with enough momentum on the volumes for the week.
The contrary analysis of a USD decline are slim but should not be discounted as the technical configuration for the USD Index on a weekly chart formation does not agree with the fundamentals unless a clearer confirmation above the USD price extension would hold at the end of the month's trading. Therefore, the last two trading days for the month of October would be critical for chartist to analyze by then. And a break below the 78.60 basis point would otherwise declare a bear making trend-changer for the USD. So far current price parameteres are not within such price range keeping a positive tone more towards holding a steadier trend.
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