The Advisor Weblog

Posted: 17 May 2011 05:07 AM PDT

Hi everyone and welcome back. Market is seeking for direction, and that's it rigth now. Dollar strong bearish momentum found a bottom, a correction started, and now investors hesitate of what to do next. Up till now, majors recovery has remained quite limited, with major currencies still near recent lows against greenback, suggesting the dollar run is not yet over.

As comment past Asian session opening Webinar, the GBP/USD bullish spike after also expected higher inflation readings did not last: pair was unable to open a candle above the broken trend line, and is back below it and losing groun towards 1.6220 immediate support. Once below, 1.6180 1.6140 and 1.6100 come at sight supported by the bearish outlook in the houtly chart.

EUR/USD is also well limited by 1.4250 static resistance area, heading lower now: watch for a break below 1.4140 to trigger further slides, towars the 1.4050 area.

USD/JPY bullish momentum is fading below 82.00; I still see yen crosses under bearish pressure, so buying seems risky right now. Better wait.

Market continues moving on risk sentiment, so keep an eye on calendar and today's housing data in the US; here is the link:

http://www.fxstreet.com/fundamental/economic-calendar/

Have a great trading day!