Saturday, November 30, 2013

Cumulative Analysis leading to Current Market Conditions

As a matter of record, Megatrade101 have decided to compile certain market trend analysis leading to the current market conditions. Knowing the effectiveness of the analysis while staying the course has led to some remarkable trades that we would like to share.

Although, there is no such guarantee that future results would be the same;  the appropriate approach to market analysis based beyond charting systems and platforms are relatively effective knowing that prices would simply walk through current market conditions.

This is also in reference to one of George Soros trading philosophy, that at certain times the market place will find its way to adjust towards market equilibrium. And volatility could be tamed while price trends are defined. 

A certain process of deduction and trading methodology do apply with a certain degree of due diligence. However, the end result justifies the means in this classic case of a reinforced trend! On the contrary, whenever positions are on the opposite side of the market, an equal risk of loss can occur. A cautious approach and serious consideration to apply this strategy should always be taken before any trade execution.

Related articles listed below have actually paved the way to how the market conditions are reflected in today's price levels.

Thursday, November 28, 2013

Price Action Analysis LIVE GBP JPY 11.28 (+playlist)

Price Action Analysis (PAA)- GBP & JPY

Mix reactions from fundamental data reports for the past few days, affected the Yen weakness nearly isolated from the USD Index technical movement. As such the current market conditions for the DXY has remained in active due to the Thanksgiving holiday and caught in a tight range for now.

USDJPY has maintained its directional trend higher and have initially reached its extended channel price resistance @102.20 as shown on the figure. The gradual yet orderly rally of the USD gaining vs. the Yen can only be seen on a weekly basis. With the daily chart quite steady with minor daily pullbacks in between trading sessions before the actual day bar would be made in a continuing price pattern. and idiosyncrasy behavior of Cable which can only be identified by going beyond charting analysis.

Price Action Analysis: GBP & JPY

Wednesday, November 27, 2013

Have a nice Thanksgiving Holiday!

There are so much to be thankful for!

We, at Megatrade101.com would like to thank all our viewers who have been following our market view and analysis of the Foreign Exchange Market. Hopefully by sharing our insights have provided you all some useful information.

THANK YOU VERY MUCH!

HAPPY THANKSGIVING!

Monday, November 25, 2013

CCy Insight & Outlook: DXY & MAJORS

The end of the week's trading towards the end of the month plays a critical role in price action for the opening of the week's trading. Digesting the first sentence of this analysis is a double-edge sword for most strategist, as the market prepares for some position adjustments and the expected weekly reports would be in the highlight.

Fresh incentives would surely provide additional volatility coming from the market. For starters, the price action on the DXY opening with a slightly higher price @80.81 basis point in the early North American session is just about right. With higher expectations on consumer confidence; the current move has driven a correction for the European majors accordingly. With the USD Index touching a recent daily session high @80.97 and a tight low @80.64 would not really make much difference on the market place until the initial data would come mid-week.

CCy Insight & Outlook: DXY & Majors

Thursday, November 21, 2013

Case Study: Effective Sequence of Trade maintaining the course

CCy Insight & Price Behavior: USDJPY

UPDATE 11.22: USDJPY Steadily supported with fundamentals with US economic data while GBPJPY cross rate supports both majors contrary to the USD daily price swings. Corrective moves have materized specially with Cable holding steady as it continues to move higher. An effective "Sequence of Trade - maintaining the course"

UPDATE 11.15: USDJPY finally breaks benchmark of 100 way above trendline resistance and tight trading range! And this is more related to Yellen's perception and ecominc outlook for the Fed's taper schedule of providing more to help the US economic recovery.  Please take note of the original date above 11.12.13 of this analysis, while it is still quite effective inspite of the stream of market data for the week.

As of 11.12 : Observing market action from the sideline has its benefits of being able to clearly see through the market's price volatility and investors market sentiments. The main market drivers can only be summarized into two segments, namely ECB Mario Draghi's rate cut decision and the much better than expected Non-Farm Payrolls report.

CCy Insight & Price Behavior: USDJPY
CCy Insight : GBPJPY Cross rate

Monday, November 18, 2013

CCy Insight: GBP JPY & Cross Rate

The market's ability to change directions can only be dictated by market participnts themselves. And this ie equally true with the Euro's backing the fundamental comments made by ECB Mario Draghi and currently has gained back its lost ground half-way through its previous decline.

While coming from its HI/LO range between @1.3800 / @1.3300; the current price level @1.3488 to this writing is seeking fresh incentives from market data particluarly on both sides of the continent, while waiting for the unemployment data to push market volatitlity. Meanwhile, the EURUSD gradual climb is indeed a welcome relief. Although, it is still pacing price action compared with the rally on Cable. GBPUSD is @1.6125 after coming from an anticipated correction and again is back on track even above the 1.6080 interim resistance of last week's trading.

Market conditions between these two major pairs have slowed with daily price consolidation is seen over the market place.

CCy Insight: GBP JPY / Cross Rate

Wednesday, November 13, 2013

Announcement:

Due to the nearing closure of the fourth quarter of the year, Megatrade101.com would be scheduling its trading break prior to the long holiday trading schedule of the market towards the Christmas season and for the New Year 2014. Therefore, Megatrade101 would likewise take this to schedule maintenance and upgrades for our website on short notices from hereunto. Besides we all know that the market will always be there.
Thank you very much! Happy Holidays and a Prosperous New Year!
ONLY THE BEST FOR YOUR TRADES!..... Alexander

Tuesday, November 12, 2013

CCy Insight & Price Behavior: USDJPY

Observing market action from the sideline has its benefits of being able to clearly see through the market's price volatility and investors market sentiments. The main market drivers can only be summarized into two segments, namely ECB Mario Draghi's rate cut decision and the much better than expected Non-Farm Payrolls report.

These two factors have contributed much of the market's price action where we have seen in the past, where a struggling battle between long and shorts positions before and after the data were released can be seen. Particularly with the USDJPY currency pair. With all said and done, price behavior from recent market squeeze and pricemovement, we have finally seen prices tamed with the USD continuing to dominate the overall trend moving higher from its previous key suppport levels identified @78.80 basis point. Especially so, when the DXY registered nearest to this support @78.93 basis point.



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CCy Insight & Price Behavior: USDJPY

Wednesday, November 6, 2013

Market Perspective: EURGBP CROSS RATE

Fundamental: British Pound (GBPUSD)

The UK services sector continues its growth rate at a robust pace, with the UK October PMI Non-Manufacturing index at 62.5. the highest registered rate reading in 17 years. Likewise, the best quarterly performance showed within its 16 year period in the third (3rd) quarter of this year 2013. At this pace, expect overall wages in this UK sector and industry to move higher as job growth will strongly register and should also be able to meet the demands of production requirements.

  • The UK PMI Services was the strongest figure in 17 years (Cable Positive).
  • The market investors & major participants await ECB on Thursday Nov. 07, 2013
  • Price Action Spill-over into EURGBP & GBPJPY cross rates
FundamentaL: Euro (EURUSD)
  • Euro-Zone Manufacturing PMI (OCT.) likewise confirms expectations.
  • EURUSD price action holds slightly to lower while pacing behind Cable prices.
  • Thursday’s ECB meeting has kept investors & traders at bay.
The final revision of October’s Eurozone’s Manufacturing PMI final figure have finally confirmed its estimate for the month of October. The increased figure to 51.3 from 51.1 in September have not spilled over as much as the effects in prices in the Cable foreign exchange market. Whereas both reports are practically net positive for both European majors as a sign for growth and vote of confidence in the factory sectors remains good in the remaineder of the year.

Market Perspective: EURGBP CROSS RATE

Friday, November 1, 2013

Market Insight: Classic Open-Ended Trade

The timing of a weakening Euro-Zone CPI and threats of deflation has found its way right at the month's trading. Justifying a short covering rally for the USD with a full percentage point higher than expectations have supported short-covering USD and position adjustments from most short dollar contrary with particular long liquidations on the Euro and Cable.

Meanwhile, the DXY has held its major support nearest to our obejctive @78.80 basis point (Price call dated Oct.18)where it registered a low @78.93 on Oct.25th and has turned gradually higher. With the final momentum push today to as high as 80.78 to this writing. Trading volatility and price action have been more concentrated with both European majors declining to their respective low @1.3479 EURUSD and 1.5915 Cable.

Classic Open-Ended Trade