Wednesday, October 30, 2013

Price Action & Market Behavior ll

In recent reports not too friendly for the USD; it still have managed itself for the expected relief recovery contrary to a bias-bearish market sentiment where the USD index have found itself topping-out from its registered daily high @79.70. Close enough for the first stage price level of 80.05/10 initial objective; which have successfully broken-away from its technically oversold condition along with its major foreign counterparts.

Although, price action has been lackluster, as the market participants are again fixated on any possible fresh cue that can be derived from the FOMC report due today. The overall stand as reaching a patched-resolution on the government's partial closure, debt ceiling and the Fed having to scale furhter forward its tapering schedule has made the major market investors shift investable cashflow towards the stock market. Since the expected time-table for Washington politics to again be present by the middle of the first quarter of 2014; regrouping strategy of portfolio diverfication would be in order. Since the closing month for October and opening of the new November month is currently at hand, trade position and price adjustments amongst institutional fund mangers would ertainly take place.

Price Action & Market Behavior ll

Monday, October 21, 2013

Market Insight: DXY EUR GBP AUD JPY

A drench of reports starting with the much anticipated & delayed Non-Farm Payroll numbers and unemployment figure for September remains in focus during the next North American trading session. The upcoming figures for Housing and Durable Goods towards the end of the week will likewise add to the impetus for investors; with the US Michigan confidence for October stricking a similar balance to the reports.

Although, this would be the main catalyst to drive market volatility back across the board; the reluctance of investors to weighin fresh trade positions are slower than normal. Uncertainty still prevails even after a near-term resolution for the government shutdown and the debt ceiling debacle has been reached. Issues on "Taper-off" by the FED while having been pushed further-out towards the 1st quarter of 2014 will certainly prolong the market's ability to generate trading volumes in the foreign exchange market as well. On the contrary, this would benefit the global stock market moving forward by the end of the year's trading activity.

Market Insight:

Thursday, October 17, 2013

Market Snap-Shot (MSS):DXY EUR GBP

Now that an initial resolution have been agreed upon, the market has shifted its attention to what actually made the market moved. As every single trader and analyst has been fixated on Washington, the market practically was likewise on a stalemate. And only now have made some dramatic moves simply based on several key factors. Listed below are the main bullet points that basically affected the decline in the USD as measured by the index registering a low @79.60 basis point.

Market Snap-Shot: DXY EUR GBP

Tuesday, October 15, 2013

Behavioral Trading Insight: AUD JPY AUDJPY


A relief recovery where market conditions for equities in Asia followed suit as continued optimism over an impending US budget resolution may actually take place and avert a possible debt default. On the other hand, is it just a quick fix-patch for an extension that would buy more time to come up with a real working agreement that would have a real serious effect for a slow-growth US economic recovery?

Weighing these news have provided investors a timely easing from tension, fear and uncertainty clouding the market place coming from all directions. However it maybe, the initial talks would probably be acceptable for both parties simply to reach the end of the year's quarter ending of 2013 would be perceived as a near-term USD positive.

With that said, how does one prepare or create an effective trade strategy in the Foreign exchange market for any eventuality of a default or a resolution in the making given a limited time period? Obviously, there would be a lot of in case-scenarios that can be conceptualize before then. And the most common for a doom & gloom market reaction is a decline of the USD and the global catastrophic effects of a US debt default that could ripple in the entire financial markets. And that is where almost all investors and traders alike would come in together to sell-off the US Dollar.

MegaTrade101.com - Behavioral Trading Insight:

Sunday, October 13, 2013

Market Insight: Majors & Crosses 4

DXY EUR GBP & AUDJPY : 

The current talks of negotiations by both parties in Washington on the government shutdown and debt-ceiling extension have provided some relief recovery for the US Dollar. As there is still no sure fire agreements made, at least the reconciliatory meetings have likewise given some serious representatives that playing with fire nearing the debt ceiling cliff would send wrong signals to a prolonged market stalemate. 

Considering price action in the financial and equities market, the USD Index have recovered from the recent low @79.63 basis point and ended the week slightly higher @80.40. A slow yet cautious price action can be seen across the foreign exchange market, where skeptic investors have seen short-term trade set-ups relative to what each currency pair can only offer. A USD bullish call can only be reflected beyond the 50% Fibonacci retracement level @81.50. And a stronger catalyst should be able to do so from a certain market direction coming from Washington, unless a counter-trend would be reported unexpectedly from the Eurozone. Click here to continue

Friday, October 4, 2013

Price Action & Market Behavior: DXY GBP EUR JPY & Crosses

In our recent market vew analysis dated the 1st of October we have defined the heavier fundamental factors influencing the foreign exchange market. The price action and market behavior reaction to these issues surrounding the market were carefully studied before and after the fact.

The recent lower opening gap for the USD as measured by its DXY equivalent resulted with a slight corrective move and followed through with a decline reaching @79.62 basis point to this writing. And a similar reacton from the Euro after the ECB remarks have added to the USD decline that pushed the EURUSD @1.3630. The contrary move by Cable pushing back to 1.6160 have finally supported the EURGBP cross price reaction from its support slightly lower @0.8330 and is currently @0.8438 recovery price levels. The closing prices of the DXY and majors are critical as they would provide a glimpse of how the market would move in the weeks ahead. Especially a delay on the NFP report would spark a sudden unexpected move within the market contrary to its present sentiments.

Price Action & Market Behavior

Wednesday, October 2, 2013

Philippine Prosperity at a cross road! ...but not without a prize.

The Asian Development Bank's forecast for the Philippines have been estimated at 6.1% slightly lower compared from the previous quarter at 6.8% increase - in fact one of the fastest growth rating amongst the Asean members ever since the country has continuously being monitored by the World bank. That obviously led to world credit rating agencies upgrading the Philippines into an " Investment Grade" status.

The overall picture has been clear that the country has improved tremendously in most sectors of business. Specially a much improve urban development programs mostly participated by a group of high profile private group of companies driving the bulk of the economy. Community Infrastructure projects, Real Estate development and Education are just a few sectors that has been enhanced over the past decade alone. Meanwhile, the Philippine Stock Exchange Index reaching record levels within this year just shows how well the path to serious recovery is in the making. Yet, all these achievements also comes with a prize; as other sectors may also be lagging behind growth.

Philippine Prosperity at a cross road!

Tuesday, October 1, 2013

Double-whammy for the USD

Market Insight: DXY EUR GBP AUD & CROSSES

The known fact has now been in effect since the divided congress did not come up with a favorable resolution. Sad to say that this occurs when the US economy needed as much assistance from these political figures and not play hardball over negotiations that a negative & direct impact would be at the expense of every American and a global ripple effect in the making.

Thus far, the much anticipated case of a government shutdown has forced the opening USD in Asia to move lower. The price gaps accross the forex market have led the EUropean majors to rally to their respective best performances contrary to what most retail traders expected. However, a slight recovery from their daily opening price gaps have reflected some short-covering for the Euro and Pound traders in particular.

Double-whammy for the USD