Low liquidity And Massive Redemptions Contain Forex Pairs - Jul 30 10 5:52 EDT
TheLFB-Forex.com A Forex Trader Portal
Low liquidity And Massive Redemptions Contain Forex Pairs
Excerpts taken from The Trader Advantage Program
Global equity trade is hanging on to the short side of risk and unable to shake the effects of the Thursday futures move that dumped two percent of value into the waste paper basket in two 30 minute chart moves. Commodity markets are picking up the speculative interest that has moved out of equities in swathes, as investors move away from the daily debacle that is intra-day stocks trade at the moment.
The record redemption numbers, coupled with a move into the fixed income markets while equity algorithm and high frequency trading tries to come of age, is not allowing too many moves to break the previous session ranges.
However, as forex traders have seen this week, the one or two 4-hour chart candles that house all of the days moves are getting the job done in quick time, and then resetting themselves very quickly. In the current market conditions it would be very easy to blink and then have missed the moves for the whole day.
Most pairs are at their opening prices, with only Usd/Jpy able to move and hold 40 pips. Not to say that there has not been tests of intra-day ranges, but there is just not enough liquidity or momentum to allow the moves to hold. For now, the forex market has found fair value. Hopefully equity trade can do the same very soon.
Forex Movers- Gbp/Usd is still bullish after three sessions of holding 1.5550. A break above 1.5650 that holds a weekly chart looks likely to draw in a test of 1.5900. Eur/Usd is holding higher, and really needs to hold 1.3050 on the weekly close to confirm that the intention is to test 1.3250 sometime next week.
Forex Shakers- Usd/Chf has the strangest looking near-term charts at the moment, with moves since the 21st July that are disjointed, volatile, and reflect well the battle-royale going on between Mr. Market and the Swiss national bank regarding Chf valuations. The SNB has built up a war chest of Euros, and now seems to be stuck playing a game of chess with the speculators that just will not allow a check-mate move.
Forex Mixers- Aud and Cad are unable to tap into the positive momentum in the commodity markets are instead are stuck wheel-spinning most days, with reducing average trading ranges and decreasing participation levels. The 200-day SMA at 0.8950 on aussie and the 100 –day SMA at 1.0300 on Cad are all-consuming price points at the moment.
Forex Losers- Usd/Jpy has an 80 pip trading range at the moment, which is by far the smallest of the major pairs, and that lack of interest in the pair is allowing it to easily track the moves in S/P futures trade. Now that 87.00 has been broken as support the market will likely spend another week watching failed attempts to break higher while 85.50 acts as a huge support area.
Global Risk- S/P trade is trading below the 200-day SMA area at 1105, and will signal a very negative stance if 1095 is broken short on a weekly chart close. The current environment still favors the short side of the Usd, the short side of risk, the short side of safety, and the short side of demand. Rarely will traders witness a global market that is loaded to the short side of everything, because that means the counter-balance is cash, and cash that right now is firmly placed on the sidelines, watching the trench warfare unfold each day.
Global Demand- Crude oil traders are at a swing point on West Texas Intermediate (WTI) at 78.00, with a weekly close anywhere above 77.50 on the most highly traded oil market signaling a bullish undertone for global demand markets.
New! As from Jun 01 10 the signals posted to clients each day will be inclusive of any Trade Plan that the trade team sees as having the potential to move.
TheLFB Signal output to clients has been registered with MyFXBook (detail below) so that clients can track and monitor movement in real time.
The daily flow of Signals cover six major pairs, plus Eur/Jpy and Gbp/Jpy. They are generated each day in response to specific global market set-ups that follow the ebbs and flows of each 24 hour global trading period. Signals come with guidelines and email updates.
Trade Signals and Trade Plans are professionally formatted for member and trade desk use, they are designed for all skill set levels to provide a structure to start the global market trading day.
Trade Signals and Plans Straight Off The Meta 4 Charts- Get TheLFB Trader Advantage
Provided by TheLFB Trade Team, © 2007-2010 LFB Services, LLC. All rights reserved.
TheLFB Risk Disclaimer
