last week end, after NFP data release for Friday (05 Sep) ,inspite of  the data being negative to USD,EURO and GBP corrected.Then early this week further corrections were witnessed when there were bad financial news from US over week end.All were surprised why EURO and GBP were correcting.Many were giving the market commentary that CB could be making USD stronger,not accepting the view that the market is manipulated by big players.

On Wednesday the lower psychological levels were broken.At that time neither fundamental nor technical comments were convincing.Then came the week end (Friday) move.EURO and GBP made massive gains.Mostly the higher level short sellers and lower level short sellers were the first to cover their shorts,hence the rise was big,unfortunately the lower level courageous buyers were less and they closed their positions with profit in a hurry during initial rise.After covering shorts the short sellers further made some shorts and when further rise happened in the market they made short covering again and turned long at higher levels as breakout trades.Then the players made big drops as wild move and rised again in a few minutes to hit the stops of the buyers at lower levels and trapped the short sellers finally near high for the day end.It has been observed that traders now have mixed feel and that is good for the market to make volatile moves.When all traders turn long then rising of the market could be difficult,similarly when all traders were short sellers and then dropping the market could be difficult.But when there are short sellers and buyers in the market then the either way moves will give nice trading opportunity,but many may view such volatility with surprise and avoid taking positions.

What could be the possible moves in coming week?

15 Sep - Monday EURO and GBP are expected to make an upward stop hunt to start the week and slide during Early European session.Late European session they are expected to rise to high and then slide during US session.USD/YEN is expected to hold near high during the day and slide along with EURO and GBP during US session.

16 Sep- A rise during Japanese session and strong slide during Early European session and then a recovery from late European session and  either way swings during US session is expected.

17 Sep- A quick drop during Japanese session and an upward spike during European session and swing and slide during US session is expected.

18 Sep- Drop during Japanese session and then slow recovery from European session is expected.

19 Sep -Week end is expected to have a subdued moves initially and then the increase in volatility could be seen with strong upward move.

These are the expected moves determined by statistical calculations and the moves may vary depending upon the variation in volume from time to time.Hence the readers are requested to use the info given as a reference while doing their market analysis and take the right trading decision with all the measures to limit the risk.

Either way trading opportunities could prevail in coming week.You may  take a sell position during upward stop hunt above the high and a buy position below the low when they make a downward stop hunt move.

More uncertanity could be seen during coming days  when the volatility is high.

Last week they have broken the lower level estimated supports and this week they are expected to break the higher level calculated resistances of the channels.

Regards

Dr.Sivaraman