Most Currencies Overbought on Dollar

NEW YORK (TheStreet) -- Near-term moves in Asian trade haven't managed to get the four-hour global market momentum reads out of neutral mode.

Most currencies are overbought against the U.S. dollar on low momentum. Forex pairs will now require a boost from oil and S&P 500 trade to hold the recent moves that came on thin order flows overnight.

The near-term technical reads show a market that is selling dollars on light volume. We will look for a reversal on euro, cable, and swissy before things can move too much further. Aussie and cad haven't reacted to gold moving through $1,100, and oil hasn't moved to back the short-dollar play. Neutral momentum and an oversold dollar, on a Monday, with not all major pairs aligned, isn't a reliable read especially when Germany's DAX and S&P futures aren't moving too far.

Lots and targets: The near-term trends are completely mixed as the market holds fair value on risk.

Red Flag Economics: Canadian housing starts at 8:15 a.m. EST. The expectation is for 157,000; the previous reading was 149,000.

Dollar Index: The 76.00 area now becomes the pivotal price point for the dollar index. A four-hour close above or below there signals which way the market is willing to test the value of the dollar. Swing Point: 75.90.

S&P Futures: The 1072 and then 1082 areas on the S&P are the near-term tops that may see things retreat heavily from if global markets fail to find equity buyers. The 1047 support area looks solid. Swing Point: 1060.