Forex Market Insight:

Major market mover in the making!

Now that the market has reacted from the direction & time-table by the FED when it comes to tapering QE3, the USD's price action in today's opening levels have signaled a near-term exhaustion. The price gap can be interpreted another way - as a daily breakaway only if a subtantial follow through price action above the 83.50 levels would sustain towards the closing price of the week and month's trading activity.

Market conditions and price behavior shows otherwise; as prices have been struggling in both directions since European opening sessions. The four (4) hourly bar formation since Asian opening have signaled an island session reversal, filling-in the gap lower in the American trading session. Momentum from the USDx low since the Fed's annoucement have gained traction while heading to its current levels @82.57 to this writing. The USDx retracing back-down should not be discounted towards the remaining trading days fo the month that would still justify that the overall trend for the USD heading towards the third quarter have established a higher low. With exceptional constraints whether such price range would be maintained. But if the prices holds true below the 83.05 primary resistance before the end of the month we would probably see a major correction in the making before the real trend higher follows through.
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