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Trade Desk Thoughts:
Toppy Majors Hit Outer Ranges
The U.S. ISM Manufacturing PMI numbers printed well above the expected numbers, indicating that the economy is showing a slow and steady improvement, however the service and employment side of the economy now has to follow suit.
EUR/USD is topping at the 1.4450 area and forming a triple top from the last three sessions of trade. USD/CHF is doing the same thing in reverse at 1.0275, with both pairs at major price points.
USD/CAD is at its recent swing point low area of 1.0365, just at the same time that AUD/USD is taking on the 50 day Simple Moving Average as resistance at 0.9100.Not only are all of the major pairs at recent swing points, they have all moved there against the near-term (but in line with the larger time-frame) trends, and all have used up their daily average trading range in doing so.
An infusion of adrenalin is required to break these short-Usd price points. Macro Minute:
Global equity trends are still long on the 4 Hour chart reads, and have room to move and hold higher it would seem. Global commodities are overbought in the near-term, with gold still struggling to reverse a near-term short trend.
The extended moves in most markets that have already used their average trading ranges, leads to individual currencies now having reveal their strength of support. The Usd still has control of the near-term trends, with the one exception of USD/CAD, which we highlighted as our trade plan of the day in earlier posts. GBP/USD is topping out at 1.6250, and the area that has been absolutely pivotal in 2009 trade.In all, the 4 hour reads below offer as mixed a picture as a forex trader could see, and one that is crying out for momentum, order flow, and sentiment to hit the market. The thing to note is that the long-Usd near-term read is against the overall trends on the Daily charts of each pair; and that indicates a swing point or a reversal is playing out right in front of us.