The Dow's decline has been one of the worst trading activity that we have seen as a result of the ripple effects from Asia and the European markets towards the US session,. Most market declines are followed by a pause and daily session recovery which is evidenced to what te market is now doing while the US consumer confidence were good giving some relief for a session price recovery.
GBPJPY & AUDJPY Price Gap failed to follow-suit the price action
of a pull back compared with the Euro and the USD
Although, observing the rest of the currency pairs, the USDJPY and its correlated cross rates such as the GBPJPY (breaking a channel trend-line support) and the AUDJPY (breaking a consolidation lower) have had some difficulty to fill-in and retrace the price gaps that was created (refer to price chart comparison). Thus the liquidity levels and volume of interest to trade against the intra-day price movement have been set aside by most forex traders even on the institutional levels. This proves that trading a less interest currency pairs still has to wait for traders to shift trade positions relative to the Yen t build up momentum to cover their bases.
The market place is just waiting for the next risk event from the ISM manufacturing and once again from the NFP / Unemployment numbers expected to be favorable as well. The USD Asian opening high levels not only filled-in the price gap but continued its decline engulfing the previous days range; which we desrcibed to be top heavy in spite of the price reaction from Greece.
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