Next Level Analysis ll

Comparative Approach: DX EURO DJ-FXCM USD:

The market has been fixated on the upcoming FOMC report that would probable dictate the outcome of the financial market this week. Although, the G8 summit meeting is focused on the Middle-East crisis and comments indirectly affecting commodity prices that would add to a volatile oil and gold prices is expected.

This would also provide some insights to the FED's clearer "Taper" time-direction from the FOMC that would make market price volatility in the coming days. But in the absence of major reports for now, market prices moves within a tighter range before any major moves are done.

In the inverse monthly chart figure 1; the correlation of the Spot USD Index (Black Line Graph) overlay with the Euro (Japanese Candlestick )provides an indication of the USD weakness more than the Euro have been supported both by fundamentals and technical analysis. And with the increase volume since the start of the year; the first quarter were USD friendly and a major corrective decline have emerged before the end of the 2nd quarter of June as volume again builds-up in line with increase market volatility. Click to continue