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Attention Forex Traders- Things Could Get Busy

Asian trade went through the unreliable pattern of trade that is hit or miss in regard to getting sustainable moves. After being in some very messy Asian sessions over the last week that failed to easily follow through, it was decided to refrain from having too much exposure overnight.

As the European session rolls around it looks as though a reversal to support on the major currencies may be happening, which could set up some 1-hour time-frame signals on all of the major pairs.
There could be a lot of activity overnight, and with the Federal Reserve going to market today with Permanent Open Market Operations that will look to monetize another massive raft of debt (again), it is likely that equity trade will hold support, and if the Treasury auction goes well may lead to S/P futures testing 1190 resistance.
If Usd/Jpy moves higher, in-line with the major Usd cross pairs making a move on the dollar, the Jpy/Cross pairs (Eur/Jpy, Gbp/Jpy, and Aud/Jpy especially) will make a break of the range-bound recent trading channels.

The 4-hour chart sideways crawl ahead of the Nov 3rd FOMC rate statement has created volatile trading arenas, but as Mutual Fund year-end finishes on Friday it is very likely that price action will start to break and hold. Add in a Bank of Japan interest rate statement and the session could be a busy one.
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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.