Wednesday, January 30, 2013

Market Perspective: USDx-EURO

The unexpected GDP report showed a decline of 0.1% annual rate that may have dampened investor's sentiments. Although, some analyst have estimated a 1.1% rise the 4th qtr. contraction have fueled some investors shifting to USD shorts that prompted the USDx to decline @79.25 basis point in the North American trading sessions.
It was not totally that bad since a stronger household income after taxes and inflation numbers is at 6.8%. And the housing market have risen to a 15.3% from the 3rd qtr. period last year.
Pls. continue click here

Tuesday, January 29, 2013

Forex: Game-changing Signals

It has been a one directional trend for the majors and cross rates for quite sometime now. New secondary highs have been marked for the EURUSD @1.3477, USDJPY @91.24, EURJPY @122.29. While the GBPJPY cross had been choppy from a range levels @144.40 high & @139.25 low with a steady-to-lower sentiments in line with the USDJPY corrective move @90.47 as of this writing. 
A subtantial decline in momentum can be seen with price action limited to daily ranges while most traders are waiting for more clues on the upcoming reports from Consumer confidence numbers, US GDP & the FOMC consecutively coming out by Wednesday. As recent reports have been friendlier towards the USD, Friday's Non-Farm Payrolls for January & Unemployment figures may simply be the main catalyst to set the final tone of the market's direction for the final trading days of the month.  

Thursday, January 24, 2013

On Currency Wars:


The risk of Politicizing Forex rates

The free market base economy has been dominated by the dynamics of Political policy makers from the three (3) major markets. With Asia having two of the largest economy driving the present market conditions like China & Japan combined represents 21% of the world's GDP.
And the recent actions taken by Japan's Shinzo Abe pursuit of national self-interest to be able to pave the way for the recovery of the economy; has asked the BOJ for a 2% inflation target figure that would result into a stronger and aggressive stance for more monetary easing.
As a matter of record, Japan has come from a trade surplus to a trade deficit,

Tuesday, January 22, 2013

Market: Yen vs. Crosses

Prior to today's market action, the consolidation across the majors finally gave way with the USDJPY leading the decline @88.60 from a registered high @90.20.
Although, prices declined and currently stalled at these levels of correction @88.72 as of this writing- the USDJPY is facing a technical correction due to a buying divergence between these prices prompting a session to session recovery for the USD vs. the Japanese Yen. While resting at its present support session level and still within a secondary rising channel as indicated on the chart figure 01. And the spillover to the rest of the cross rates related to the Yen have been more affected than the other majors.

The prices correlated to this decline among the cross rates have provided the relief that some traders have been so eager to see in the market, The GBPJPY continued its prices lower @139.79 with a corrective move currently @140.75. Prompting some liquidation from earlier longs that saw a relative reaction from the decline of the Sterling Pound. 

Thursday, January 17, 2013

DECLASSIFIED: Exclusive Analysis & Trade Plan

EURGBP-GBPJPY-EURJPY
Most of our viewers probably came across our blogspot dated October 29, 2012 titled "Exclusive: EURGBP Analysis" for our Premium members & clients of MegaTrade101.com. Where we have provided an exclusive analysis, a market outlook and a detailed trade plan for the EURGBP Cross rates. Identifying that the trend during those times were a "Reinforcing Trend" in the making. However, due to the USDJPY resurging to its current price levels today; the EURGBP has been over-shadowed by the major movements of the GBPJPY & EURJPY crosses dated last November 18, 2012 respectively. Which we did identify and traded within the price rally and the importance of following a trade plan within a fairly reasonable time frame and price flexibility.
For a complete analysis, pls.click here

Tuesday, January 15, 2013

Trending Price action ...

After a Major Move Or a Price Correction.
The aftermath of a major move and a follow-through would obviously be a corrective move, in the true sense of trading a volatile forex market. Even with the Feds improved outlook for 2013 GDP of 2.3% and a widening trade deficit has not helped the USD to this point. A relief recovery can be seen naturally from the previous week's trading activity due to the fundamental remarks made by ECB President Mario Draghi has place a better outlook for the Euro Zone thus improving market price stability for the EURUSD.
Meanwhile, Japan's Prime Minister Shinzo Abe has retained his stance in improving Japan's economic outlook and has kept the pressure up with the BOJ for a more bolder monetary easing ahead of its policy setting meeting by next week. This also has kept USDJPY relatively stronger in line with the events in Japan and the overall market sentiments in the USDJPY current trend higher. So far, nothing has really changed with the current market conditions to this writing. Except for, 

Thursday, January 10, 2013

FX Market True Colors!


Euro surges after ECB Draghi's comments
As most analyst have have been expecting a no action from the ECB, the disappointment came as a more positive stance taken by ECB President Mario Draghi without mentioning the rate reduction have boosted the EURUSD to its intraday high @1.3195. Although, the 1.3305/10 also serves as the initial cap where a resistance is set for the near term however, market sentiments may change depending on momentum and volumes as a probable retest of these highs would not be discounted.'
The EURUSD rally have influenced...

Wednesday, January 9, 2013

AUDUSD-Perspective

While some economist have been inclined to state that China may experience a hard landing; the most recent net export data increasing by +14% for December equivalent to a 5.0% growth figure beating market expectations have been very good & proven otherwise.
This only shows China's resilient economy is picking up which would benefit the Aussie Dollar. As a major counter party to China's economy, the AUDUSD have gained back its losses from a previous low @1.0395/00. And is currently working at the 1.0550 higher levels as of today's writing. Although, the previous week's trading have been in a corrective tone for the AUDUSD, the increased level of market confidence from the recent data is fueling a retest of the AUDUSD above the 1.0550 first line of resistance and heading to its December 12, 2012 high @1.0585 level.
As current market sentiments have surged from the previous decline in prices @1.0344; the gradual price rally have sustained so far with a couple of rapid price action on both directions on the first two trading days entering the new month of January. The Aussie Dollar chart formation has the market potential to become a reinforced Trend depending on the final outcome for the USD directional movement in the weeks ahead.

Tuesday, January 8, 2013

On Precious Metals:


GOLD & SILVER
It has been a challenging end of the year in 2012 for the precious metals in spite of the fact that the yellow metal has reached an outstanding price performance last September 2011 marking a USD1920.75/troy oz while silver spot on a similar level reached USD49.78 last April of the same year. Both Gold and Silver prices have since then been on a corrective tone.

Mid-Market Analysis

USD:
Price action activities has been limited to a consolidating pattern in both direction after a huge market movement the beginning of the new trading year. With three consecutive days of USD strength and a decline in the European currency pairs the market is in a pause awaiting some fresh market price incentives. The USD has retrieved back to its lower levels but within striking distance slightly above its all important support range levels of 79.85-80.05/10.  Likewise, momentum has tapper-off leaving a negative breath for a probable decline below these levels with daily high price corrective movements is expected to be made.
EURO:
Is steady with the EURUSD resilient price action limited only within a daily consolidation on both directions. Chart prices are within a major trend channel, even after a 300 pips major correction was made the previous week's trading. However, we do not anticipate a trend reversal until such price levels closes below the trend line channel price of 1.2880 before anyone can claim a reversal. For now the price resistance is cap @1.3300 as the mark; while initial support remains to be @1.2980 on a daily basis. And the current level is @1.3090 to this writing. A Tug of War between bulls and bears can be identified from the candlestick bars with long tails or sometimes called " shadows / wick" defining the HI/LO prices in between the three trading sessions.