A move lower in European equity trade, following weak overnight Asian moves, allowed the commodity markets to test support, and the Usd to gain on the major pairs, completing a very choppy and overlapping period of trade in October.
Eur/Usd tracked S/P futures lower, and set a sentiment on the major pairs that has allowed a test of 4-hour chart support, at a time that trend and momentum reads remain stuck in neutral, with one-day-up and one-day-down trading patterns prevailing ahead of the most important red-flag economic period of the year to come next week..
The Jpy cross pairs are now likely to consolidate, as Usd/Jpy moves higher at the same time that the major pairs lose ground to the dollar. Until Usd/Kpy and the major currencies move in the same direction the Jpy/Major moves will be negated.
The standard 1-hour chart candle that contains the majority of the session moves looks to have formed, and after a jagged period of Asian trade the European markets have shown that Usd buyers are in to hold support, in-line with equity and commodity sellers hitting the market on Wednesday.
Maybe, just maybe, the dollar bulls may be gaining strength ahead of the FOMC rate decision on November 3rd.
Disclosure: TheLFB runs an automated trading program that is constantly one side of the dollar or the other, in-line with the detail posted in the article.