Market update.

There is very little movement in terms of Price action going on with the markets really consolidating and barely moving in any direction right now.Most USD pairs are in congestion zones and have made very little progress on the daily charts so far.The Eur/Usd is in a rising wedge in the 4hr chart but caught up in a congestion area in the daily chart.I am hoping for a break of this zones so that price action momentum can resume.However,this can only happen if fundamentals start to kick in with the Italian prime minister saying that he will quit once the austerity laws are in place.Italy is one of the biggest economical nations in the Euro and any news from this region will cause a lot of volatility.We will be watching closely for more fundamental news from Europe for Price action.

In the 4hr it looks like it is imminent for a break after a consolidation for days. It did actually break to the down side with news that Italian bonds went passed the 7% mark.

Possible head and shoulder like pattern formation on the Nzd/Usd.Lets wait and see how it all pans out for further technical implications.

Cable is at a resistance on the 200 MA  and may be bearish after failing to break past this resistance.Today may be bullish for the pound but the pair is still caught up in a congestion area which we will wait patiently for a convincing break to continue with the trend.This may come in tomorrow with plenty economical news from the Pound with the MPC rate statement,official bank rate and the asset purchase facility releases.It also broke to the downside now trading lower with news from Italy.

Yen pairs on the other hand seem to be retracing all the gains after the intervention by the finance minister of Japan.Most of the pairs have already lost most gains and the USD/JPY is no exception showing further losses since yesterday with continuation today headed for the 77.00 level.This in my opinion may prompt further intervention with losses against the greenback.I will stay bullish on the Yen when it moves to lower levels as the BOJ may act again to weaken its currency.

Good luck trading and do your own analysis.