GOLD USD CAD GBP
As the earnings report and the DJIA provided the majority of investors sentiments; what the market reflected is a classic volatility seen towards the end of the month of January's market cycle for certain currency pairs.
More often than not, these types of market conditions occur with extreme price action backed by fundamental reports and volume activities that serves as catalyst as market drivers. Being able to isolate and correlate them with one another takes analysis to the next three levels before making some real good trades in the market. What this means is to properly weigh market reports that have played into certain currency pairs prices while trading the foreign currency market.
Classic Market Volatility
MEGATRADE101.com - The Business of Making the Right Trading Decisions Beyond Charting & Price Action Analysis
Sunday, January 26, 2014
Wednesday, January 22, 2014
GBP Reinforced Trend
Post UK Unemployment: GBP Rebounds
With the UK Unemployment rate figure dropping to 7.1% as reported today alongside the BoE minutes on its monetary policy, the GBPUSD currency major jumping to as high as 1.6580 in the early morning sessions of the US market.
In the past statements made by the Bank of England is that it would only consider raising rates when the unemployment figure would decline to a 7% low. And this has been the threshold or may even be set as the BoE benchmark before any movement on rates would be made. However, traders were quick on the draw and helped push Cable to its recent highs.
And this price action may find support in the price momentum and a considerable follow through when volume build up and more likely a new set of forward rate guidance to anticipate that the BoE may start considering its move ahead of time.
GBP Reinforced Trend
With the UK Unemployment rate figure dropping to 7.1% as reported today alongside the BoE minutes on its monetary policy, the GBPUSD currency major jumping to as high as 1.6580 in the early morning sessions of the US market.
In the past statements made by the Bank of England is that it would only consider raising rates when the unemployment figure would decline to a 7% low. And this has been the threshold or may even be set as the BoE benchmark before any movement on rates would be made. However, traders were quick on the draw and helped push Cable to its recent highs.
And this price action may find support in the price momentum and a considerable follow through when volume build up and more likely a new set of forward rate guidance to anticipate that the BoE may start considering its move ahead of time.
GBP Reinforced Trend
Tuesday, January 21, 2014
Price Action Cross Analysis by Alexander@megatrade101.com
Vs. Technical...Fundamentals are secondary for now!
The markets' ability to move in its real directional trend remains passive until the middle of the weeks' report. China and German figures did little for the single European currency. Although some support have lifted the US dollar in the past few trading sessions supported by Asian traders. As a spill over market sentiment from the USD closing higher at the end of last week trading session.
This somehow paves the way for the BOJ monetary policy statement due Wednesday to provide the Yen's direction as early in the Asian session. The USDJPY have been caught within the 102.85 - 105.55 range levels, moving sideways and currently @104.63 as of this writing. The defined trend is still intact with a slight topping-out formation which signals a probable technical decline until such time the contrary fundamental report may say otherwise.However, we would not discount a re-test after a pullback is made on a daily price action in the European market
Price Action Cross Analysis by: Alexander@megatrade101.com
The markets' ability to move in its real directional trend remains passive until the middle of the weeks' report. China and German figures did little for the single European currency. Although some support have lifted the US dollar in the past few trading sessions supported by Asian traders. As a spill over market sentiment from the USD closing higher at the end of last week trading session.
This somehow paves the way for the BOJ monetary policy statement due Wednesday to provide the Yen's direction as early in the Asian session. The USDJPY have been caught within the 102.85 - 105.55 range levels, moving sideways and currently @104.63 as of this writing. The defined trend is still intact with a slight topping-out formation which signals a probable technical decline until such time the contrary fundamental report may say otherwise.However, we would not discount a re-test after a pullback is made on a daily price action in the European market
Price Action Cross Analysis by: Alexander@megatrade101.com
Wednesday, January 15, 2014
USD Rally In Asia
Ahead of other markets
US Dollar Index extended its high with an opening daily gap lifted by comments from Fed officials. The dollar index after dropping to 80.44 is now back at 80.87 as of this writing. The strength has clearly influenced the Aussie and the Yen for now.
Background:
As one of its regional Federal Reserve bank official continues to push for a cut in the U.S. central bank's emergency lending rate in December, while three others renewed their request to hike it instead. The source was from the minutes of Fed deliberations released on Tuesday. This are the kinds of market influence that dictates price movement even before two other market sessions open.
USD Rally in Asia
US Dollar Index extended its high with an opening daily gap lifted by comments from Fed officials. The dollar index after dropping to 80.44 is now back at 80.87 as of this writing. The strength has clearly influenced the Aussie and the Yen for now.
Background:
As one of its regional Federal Reserve bank official continues to push for a cut in the U.S. central bank's emergency lending rate in December, while three others renewed their request to hike it instead. The source was from the minutes of Fed deliberations released on Tuesday. This are the kinds of market influence that dictates price movement even before two other market sessions open.
USD Rally in Asia
Tuesday, January 14, 2014
Forex Review & Outlook
EUR GBP YEN GOLD DXY
Coming across an excellent information from the Financial Times have proven to be quite enlightening as far as the important events describing the USD performance. The recent NFP report were not as supportive as everyone has expected, as the USDX have again traded near its low and currently @80.44 basis point.
Yet the USD decline had most traders really surpised with the figure. Meanwhile, Cable's similar decline was expected based from our last market insight dated the 7th of January; that the signal for the GBPUSD to decline would simply present itself withn the 2 weeks period we specified from said date. Its only been a week and Cable has attempted to move below the 1.6350 support - which it did with a 1.6345 low (big deal!). And currently recovering from the sudden price swing from yesterdays move.
Review & Outlook
Investment: USD Disruption
Coming across an excellent information from the Financial Times have proven to be quite enlightening as far as the important events describing the USD performance. The recent NFP report were not as supportive as everyone has expected, as the USDX have again traded near its low and currently @80.44 basis point.
Yet the USD decline had most traders really surpised with the figure. Meanwhile, Cable's similar decline was expected based from our last market insight dated the 7th of January; that the signal for the GBPUSD to decline would simply present itself withn the 2 weeks period we specified from said date. Its only been a week and Cable has attempted to move below the 1.6350 support - which it did with a 1.6345 low (big deal!). And currently recovering from the sudden price swing from yesterdays move.
Review & Outlook
Investment: USD Disruption
Sunday, January 12, 2014
Comparative Risk & Leverage Analysis
WHEN DO TRADERS USE THIS STRATEGY?
Being able to properly use the extra leverage on an account may seem to be expensive for others because of the additional funds to maintain two (2) or more positions in the market at any given time. However, it is more important as to why such additional positions should be made is clearly vital in meeting the investors financial objectives.
Comparative Risk & Leverage Analysis
Being able to properly use the extra leverage on an account may seem to be expensive for others because of the additional funds to maintain two (2) or more positions in the market at any given time. However, it is more important as to why such additional positions should be made is clearly vital in meeting the investors financial objectives.
Comparative Risk & Leverage Analysis
Friday, January 10, 2014
Cable Rally After Jobs Data! Euro Follows
A probable re-test above the 1.6580-1.6610 would be the next levels that we can see with enough volumes and momentum to push prices higher would be the best logical move. Wider price swings are expected with a drawback lower from these highs at the end of the North American trading session. Meanwhile, support price level is still intact with 1.6350 fairly just above Cable's trend-line support as indicated on the chart figure.
The overall trend is well defined contrary to the corrective phase decline from the past week has proven to be just short lived. There would be some probable corrective move in the making for Cable within a two week period which would be part and partial of its cyclical pattern for the month of January. This set-up would present itself when the motion of traders have exhausted their bullish market trend sentiments in the medium term.
Even with most traders on the EURUSD still caught short of the market from last weeks decline have now suffered a serious setback from the USD Index moving back down @80.60 to this writing. Again, we do expect wide market swings as we have likewise described with the Gold market. As the USDX has enough room to move lower within striking distance of the 80.05/10 support levels
Tuesday, January 7, 2014
Market Insight: GOLD / DXY Overlay & EURO
Just for chart references; Gold prices has declined from November 2013 to the very end of tradng in December touching USD1182.35 low before it made a reversal price direction. High Volumes on the lower chart have signaled this prior to the end of the year.
Currently, Gold prices have recovered back to the USD1241.58 levels with a high @1248.42 for the start of the 2nd week of January trading. Position adjustments and re-positioning from its current lows have driven back market bull interest & sentiments for the precious metals. Marking a target price objective back to the 1250.50 as a re-test for the market. And a good support price level is seen @1200.00 for now.
Click to view: GOLD / DXY Overlay & EURO
Currently, Gold prices have recovered back to the USD1241.58 levels with a high @1248.42 for the start of the 2nd week of January trading. Position adjustments and re-positioning from its current lows have driven back market bull interest & sentiments for the precious metals. Marking a target price objective back to the 1250.50 as a re-test for the market. And a good support price level is seen @1200.00 for now.
Click to view: GOLD / DXY Overlay & EURO
Sunday, January 5, 2014
Ccy Insight: Price Action SPOTCHECK
While the Dow Jones Industrial Average and the S&P Index makes historical price rally to top-off the year with a considerable build-up of bull sentiments for the US economic recovery reflective of the US Dollar price recovery better than expected positive reports with the Fed pulling back a not too significant taper amount for the start.
Being in the market sideline has indeed have its advantages, as a clearer picture had just unfolded with a simple rational explanation leading to a colorful price reversal at the start of the 1st week of trading activities in 2014. With the four major market indicators stated above,
- the EURO reaching its high price objective @1.3893 on 12.27; Cable's 1st high on the same day of the last trading week of December @1.6576, with a 2nd retest @1.6603 dated 01.02; were vital for the market.
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