USD gaining alot of Strength

Posted on Wednesday, February 3rd, 2010 at 8:43 am.

As you my know the EURUSD is in a over bought situation in the Forex market i believe it will continue the downward trend for majority of the week. I would expect alot of the pair to retrace after the New York session today. I assume that the markets are going to reach the level where the market is going to go to the extremes then you will see a huge pull back in the markets.

Most case senario in the Forex market is when the U.S. stock exchanges close alot of volume gets taken out of the market. Then you can see that markets shift there move and retrace if they are tied with the USD currency pair. So if you are a day trader you need to be aware of the big news announcements during the New York session.

As you may know the markets with always respect the major support and resistance levels so i expect the market how the USD is gaining alot of strength will go to the next major level then bounce off.