Market commentary....

Hi All,
Very difficult day to trade today it was. Overall the direction was in favor of the longs as had been predicted in this blog but it was a yo-yo kind of day with the price moving up and down a lot. This was true not only with the major crosses but with the other crosses as well.

There was a very slow and steady upward movement which is atypical of the yen crosses which are known to rise and fall in a heap. This shows that the market is not yet decided on what to do and the market is still not decided on which is the right direction to go in. Not much data was released today and this was an added reason why there was no major movement today in any direction. Not much data is to be released tomorrow as well and so we could expect similar movement tomorrow as well.

To me, the direction to go is still in favor of the longs and this week should be interesting as the market does not know where to go. This makes trading that much more difficult and it would be well advised for the traders to be careful in their trades this week.

I somehow have a feeling that this would be the start of the correction in EU and GU which is long pending. I feel that some news to be released out of USA this week would be positive for it and would trigger the strength for the USD. This is just a gut feel rather than being based on any fundamentals or technicals. I feel that EU and GU have risen enough and the result of this huge rise and its adverse effect on the economy would be slowly reflected in the news which are to be released over the next 2 weeks.

As always, trade carefully with good, well thought out stop losses and take profits.

Happy Trading!!!