Critical Levels:
Reiterating this case scenario can be defined as an equalizing factor between an over-valued Stock market adjusting itself with the fundamentals comparing with the mixed economic data coming from the different sectors.
While the US Dollar price recovery have been slow inspite of being able to gather some earlier momentum. Relatively, the USDx price behavior has bestowed some lingering doubts amongst analyst and traders where the recent declines were attributed to negative reports from another increase in Jobless claims and a lower housing starts that pushed some corrective declines for the USDx @83.44 during the midweek trading session.
Apparently, such behavior can be seen as price action of opening high with a daily price gap against the previous closing and have been driven down in between trading sessions. This typical price action amongst traders have been a market squeeze and/or sometimes referred by major bull participants as a bull-trap. And a market recovery happens before the New York closing hours.The daily candle-bar would reflect a negative signal since most smaller day-trade speculators would unwind some intra-day positions. A true example is the daily candlestick bar on May 16 - Thursday closing @83.75 with a subsequent opening price gap @83.90. Pay particular attention with these bar formations, chart set-up and price action which will dictate the next directional price movement before it happens. There would be some instance that the closing prices may eventually close higher /lower than the opening price gaps at the end of the trading sessions.
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