Monday, August 11, 2014

CCY Insight: USD EUR GBP & Cross Rate

Investors have been leaning towards where the market sway. As it has been surrounded with the geopolitical tensions on both sides of the Middle-East and the European / US tit-for-tat trade sanctions; the market could barely find it true direction.

Although, with the most recent easing of tensions in the Gaza strip and containment of the Islamic state activities have given some relief for a recovery among stock market activity. But this has not given much room neither for the precious metal or currency market any real sense of market direction, except for price swings move within their respective hi/lo band. Making lackluster trading activity to prevail except for event risk which increases volatility during each realease date. Other than that expect the market to stall in a tighter range during each day of the week until it finds a real catalyst to break their respective channels. As follows:

USD Index is confined within the recent High @81.72 and @81.25 in the very near term outlook. Furthermore, extending the low would well be @81.05 basis point. For swing traders to have anticipated a corrective move lower for the USD was well within the 2nd swing touching @81.72 from 81.57 first high and a correction towards the 81.19 before making it back to the 81.72. A divergent trend with enough selling pressure has prompted the current move and pullback towards 81.45 where it is currently at.

CCY Insight: USD EUR GBP & Cross Rate

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