Forex Notes for Tuesday

Forex Trader Note: The Royal Bank of Australia raised interest rates to 3.5%, and in doing so triggered sell orders in AUD/USD as the market initially bid down the chances of further rate hikes.

The moment equity trade holds in the green, the aussie will go long. The Japanese markets are closed for a bank holiday, and that may impact order flows, especially after a session of 24-hour trade that spun its wheels.

Lots and targets: The trend and near-term sentiment reads are very mixed at the moment, and that means a reduction in lots and targets in the near term.

Red Flag Economics

10 a.m EST Factory Orders Exp 1.1%, Prev -0.8%

Dollar Index: The 76.00 area now becomes the swing point for the dollar index. A four-hour close above that price point signals a market willing to test the resolve of USD bears

S&P Futures: S&P swing point at 1030 is being tested as support in afternoon trade. A four-hour chart close below that will continue the short bias. The USD and S&P are inversely linked, short equities allow the dollar to hold ground.

Crude oil: Oil found buyers at $77.50 previously, and really does look to have to close above that area in the coming sessions to stave off a short-sided wave of orders.

Gold Bullion: Long overall trend, on all time-frames. Look for continued strength as a play against future inflation. >

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