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Currency Pair Overview:
Low Momentum Trade- Except For Cad
Overall, the overnight session proved to be very slow in the currency market, with the major pairs moving on thin momentum. The same trading behavior was seen during the prior day of trading, when the currency market on Thursday barely moved. The chances are that the market will start to trend once again around the NFP payroll numbers are released, which, historically create strong volatility.
Dollar Index Technical View: TheLFB Member Charts
4 Hour Chart: Mixed. Main price points: 74.95, and 76.82. Looking for: Move higher
The dollar index is trading lower at the moment, after the 76.82 top that was established on Tuesday, at the start of the European session. The current move down could be the red wave c) of a black wave ii flat pattern with the recent bottom around the 75.50 area, and the Fibonacci support levels. The bull trend confirmation comes with the break of the 76.82 area.
The alternative wave count may also still be very important, which is showing a structure of a clear zig-zag correction labeled as circled A, B and C. If this one is the correct count then the 76.82 highs must hold, while the market trades towards the yearly lows.
The euro (EUR/USD 1.4890) saw a range of only 20 pips during the Asian session, but throughout the European open, the euro added some additional pips. Right now, the euro is trading in the 1.4900 area, the same place where it formed a swing point high over the last two days of trading.
TheLFB Trade Plan of the Day is one of the six that are available to members on the major pairs each day, plus four Jpy based cross pairs, as well as S&P futures, oil, gold, and the dollar index.
The pound (GBP/USD 1.6595) is currently consolidating in a very small range, just below the 1.6600 area. This comes just one-day after the BoE increased the asset buying program by 25 billion pounds, half of what the market expected. A break above the 1.6600 area would shift the pound’s outlook to long.
The aussie (AUD/USD 0.9165) headed only higher during the overnight session, but still the pair gained merely 70 pips. In Thursday trade, the aussie managed to break above a resistance trend-line that has been holding the pair for almost two weeks. To the upside, the next target is in the 0.9300 area.
The cad (USD/CAD 1.0630) had trading for the third consecutive day within a range of only 60 pips. In addition, the cad is also trading very close to the 50-day moving average, which might be the main reason why the it had failed to move anywhere lately. At 7am EST, Canadian Employment Change numbers hit and with a very negative read of -43K, from the previous +30.6K that pair rocketed higher to test 1.0730.