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The Australian Dollar (AUSSIE) have shown some encouraging price action moves for investors and traders who prefer more of long positions on an Australian price recovery.
And we @megatrade101 is not an exception to this rule. As carry trades used to be a strong favorite of ours, the technical outlook and price levels are more inviting. The recent registered low @0.8540 levels (Yellow circle) was a significant price levels especially when prices recovered on the way higher. Although, some may find this on a lack of market conviction; the desired levels and prices are good enough for some longer term outlook against contrary opinions on the Australian Dollar. However, do not discount the possibility of price pullback since the major trend is still bearish.
The commodity currency alongside with the Kiwi have now more than ever influenced by China risk events and data. This currency pair and its corresponding cross rate of the AUDJPY will still be in focus. Needless to say the attractive strategies that can be played with a controlled risk on position trading. Conservative as it maybe but still delivers the goods. For now the 0.8540 would remain the base price moving forward. Fresh position would be held for over a period of time considering 'Time, Exposure & Tolerance' levels is key to this trade plan & strategy. It is how would be willing to play over a period of time.
Meanwhile, the AUDJPY remains resilient @98.86 to this writing, that reflects it is decided to stay on the higher band of the prices. Since this is supported by the Aussie Dollar's ability to recover from the price decline.
The Dixie (DXY) have finally achieved its initial target objective nearest to its all important price objective @88.80/92 basis point. .However, would not discount the probability of retaking it for a 2nd try & establish a new high before a pullback can be expected. It registered a recent high @88.20 basis as market sentiments remained strong for the USD with the FOMC, BOJ monetary policy move and the Jobs #'s from the NON-Farm Payroll maintaining a 9th consecutive job's growth and a lower Unemployment report of 5.8%.
The recent rally was anticipated since we have made mentioned that these times are exceptional that the USD movement came alongside with the strength direction of the Dow Jones on Wall Street reaching the 17580 levels from the start of the earnings season. The corrective move towards Friday's closing was likewise expected, since the end of the trading week was almost over and the risk events have been delivered with high expectations of good number results. CCY CORNER - US DOLLAR INDEX DXY
The CCY Corner where you would find the market outlook and each currency analysis as to their respective direction for the weeks ahead! This includes both Currency Majors and Cross Rates in a premium page access!
With most of the major reports released, carry-over market sentiments on the US Dollar has remained well in place. That being said, the major driving force that has been the main catalyst of the market have obviously started from the FOMC direction.
The recent move by the Bank of Japan's own version of the US QE3 and now finally confirming that the US came strong through its nine (9th) consecutive Jobs figure with a touch of a decrease in unemployment figures continued to boots market sentiments.
And the US Dollar Index (DXY) registering a significant high @88.20 basis point, ever closer to 88.80/90 resistance levels. While retreating from its highs and currently @87.83 from a US session low @87.67; a normal move nearing the closing session for the week. A technical divergent trend has emerged as the US Dollar continued to move higher, putting some slight pressure contrary to market sentiments. Thus leading to some initial position and profit-taking towards the close of the day.
As expected Alibaba (BABA) has made a recent run above the 102.00 levels while keeping pace with Apple (AAPL) at the 109.00 levels. Making a huge difference within the recent decline on the DJIA and the technically motivated "V" recovery formation has now been justified with price action rally.
Other than knowing which of the "Tools of the Trade" to use to identify a probable target level as reflected using a simple Andrew's Pitchfork application other than a projected Elliot Wave objective and a Fibonacci Time frame to achieve a realistic time period for price action & directional moves that would be defined on every closing price levels. Supported with the relative momentum index shows investors shifting funds and a flight to quality investment on the USD.