DXY Achieves its Objective for now!

As of July 31, 2014 US Dollar Index DXY

81.50 Basis Point has been marked with a high @81.57 and a low @80.98

Directional Market Insight for USDX call on July 28,2014

Alternate Trades: SGDJPY & GBPUSD (Declassified 8.21.2014)

In keeping up with the Yen cross rates; the Singapore Dollar versus the Japanese Yen would be an excellent alternative cross rate choice to trade with. This is in anticipation that after a long consolidation on the USDJPY currency pair, that event risk related to the USD continuing strength for the week ending August 01, 2014 would prove to have a more probable market potential contrary to its limited price band moving higher after breaking its primary line of defense as indicated above the 82.00 / even level.

With a trading range between the 81.00 low and 82.00 even price levels; once the prices would walk through these risk events by the opening of the new month of August; such price adjustments leading to a probable break above the 82.00 would be supported with the strength of the US Dollar Index hitting its initial target objective of 81.50/60 as defined in its next leg higher from a Fibonacci extension objective.

Declassified: Case Study for August 21 Trade & Price Action Results. Objectives Accomplished!
Alternate Trades: SGDJPY & GBPUSD

MT101 Trailer Guidelines Trade with Confidence

Trading FX can only best serve each individual investor depending on the analysis, market outlook and sound trading decisions by which one is satisfied with their investment results at the end of the trade. Knowing when to trade, not to trade, stop any loss and simply take a profitable trade are just some of the basic elements for a successful trade. As everyone who reads this article would say. . . " tell me something I don't already know. " As the news from any important event or report is interpreted in so many ways, that everyone knows what is going on.

Money management has all its principles and practices that needs to be followed. Trading the Foreign Exchange market has a few lessons of its own. Sharing these experiences can only help improve one's trading skills from a 30 year market veteran who has outlived several FX companies from one of the biggest commodities brokers such as Refco, Long Term Capital, MF Global  to FX Concepts in New York likewise one of the biggest Forex Hedge funds. 

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FX: Directional Market Insight for USDX

A busy week schedule is expected with the US Dollar taking center stage as a reaffirmation for its rally is likely to continue with a few daily pullbacks. the US GDP again in focus with the NFP jobs data and the FOMC rate decision. By mid-week, we would see some market price action to start within the Asian trading and European markets as it makes its way through the US trading session. A much related analysis dated June 30 for DXY prior to breakout.  US Dollar DXY - A major Correction & Key Price Recovery

Price swings are limited to the three (3) day trading activity as a norm in trading activity. As most participants wants to see market reaction right after market data are released.But as a matter of price comparison and signal indicator please refer to the CIPHER3 chart from the weekly US Dollar index indicated below. with the 79.85/90 basis point figure now serves as the secondary higher support for the US Dollar Index while the DXU14 @80.80 likewise would be the same. Click here

Identifying US DXY Price Reversal

Trend-following the US Dollar Index 'DXY' from its Pivotal price point and reversal formation since the week of July 01 has proven to be a classic pattern where the first signal came through and a follow-through breakout came after the prices stayed above the all important key price level @80.05 on the way higher.

Daily DXY & Weekly Comparative Overlay Chart

Likewise, the shortened trading week on the fourth of July have given the USD Index a typical symmetrical triangle formation on a technical perspective from the its previous corrective price move with a registered low @79.74 basis point figure as shown on the green-circled of a reversal three bar cluster-formation. This is over and above of the positive jobs numbers that fueled the US Dollar recovery and the rally on the Dow Jones Industrial Average & SP which is nearing the 2K mark.

However, the more important process of Cipher3 Analysis is comparing the DXY with the corresponding Futures prices with DXU14 & DXZ14.pdf (On Demand Subscription on Website) where the actual confirmation signal of a probable breakout to the upside was in the making; when the Price Reversal couple with volumes have shown on their respective charts in the attached link of a PDF file on the DX Futures.

NOTE: Monitoring the Futures DX is a sequence of process where the objectives of the prices can either be achieved in reaching their respective supports and resistances ahead of the spot DXY. In these two contract months, the registered lows both dated last 05.08.14 were @79.05 for DXU14 & @79.24 respectively. These reference points are part of the variable reference of importance.

Perspective & Insight: EUR GBP JPY Majors & Crosses

On a 'Grand-scale Price Action Analysis'; there exist a similar view where the Euro/Yen (EURJPY) cross rates & USDJPY shows a directional market significance particularly with Asian traders. With the Euro's slowing inflation rate there is much to anticipate that the extended market consolidation on the USDJPY may soon prove to be a worthwhile waiting game for some positively motivated Asian traders & investors.

The daily & weekly price consolidation on the USDJPY remains to be @101.05/10 (S1) to 102.60/80 (R1) since February 2014. While the USDJPY held these price range; Sterling's ability to hold versus the Japanese Yen (GBPJPY) has had the similar effects of the run from a low @137.80 in 03.2013 to this period today @173.30. And much of the currency pairs traded have evolved around these pairs alternating moves as trend-following strategies where applied.

With that said, most US & European investors have been trying to weigh & setting aside a lot of market distortions from the geopolitical tension lingering-on in the European & Middle-East conflicts while still focused on the recent correction on the Dow Jones & S&P markets. And somehow manages to pullback from their daily low ranges and likewise finishing the day sessions with barely a double digit decline. These moves are part of a technical price alignment primarily based on the recent reports for jobs and a surprising housing contraction that led the pace for the decline.

To a certain extent that this similarity had also occurred with the overall picture perfect for Cable after a wide trading range breakout beyond the 1.6745/60. And registering a high @1.7192 before the current corrective move to as low as 1.7035; while the EURUSD recent high @1.3700 on 07.01 have prompted the single currency pair to its present lower levels @1.3522 as of this writing. As both majors have shown their respective resiliency to stay above these levels, one can not discount the probability that these currencies may still hold some underlying strength in moving forward contrary to its corrective phase which is likewise still in the making. Key levels to watch for CABLE still remains @1.6970-1.7000 range support and as for Euro is initially set @1.3450/70 to its current market rate @1.3520.

Highlights for the Week

Jul 23   
Australia Consumer Price Index 01:30 GMT     3.1% Consensus     2.9% Previous
Bank of England Minutes
08:30 GMT
Bank of England Gov. Mark Carney Speech
11:45 GMT
_____________________________________________

Update: US DOW Rally Still Intact!

MegaTrade101.com Portfolio under Management

UPDATE: AS OF JULY 14, 2014

SYMBOL        CHG  % CHG

DDM	122.72	+1.54	+1.27%
DIA	170.29	+1.09	+0.64%
FB	67.90	+1.56	+2.35%
GOOG	584.87	+5.69	+0.98%
AAPL	96.45	+1.23	+1.29%
TWTR	38.31	-0.02	-0.05%
SBUX	78.56	-0.04	-0.05%
DJI	17055.42	+111.61	+0.66%
GSPC	1977.10	+9.53	+0.48%
N225	15395.16	+98.34	+0.64%

USD Gains Extra Wind!

With a windful Jobs report; the USD has found that extra lift moving above the 80.05/10 closing price @80.27 and opening with a minor gap @80.33 in the early trading sessions. A narrow trade deficit was apparently expected with the USD nearest it lowest levels that likewise have held strong still above the psychological price benchmark @78.80. Entering into earning season for the third quarter, the DOW continues its rally, expecting minor trend corrective moves after breaking through the 17K levels.

The DOW's stellar moves have been a significant sight to watch where the DOW's corresponding price levels contributing to lift our ProShares Ultra DOW30 (DDM) @122.86 and DIA @170.47 positions to its highest levels at the closing of the week's trading. Thus, today's corrective move is expected with the higher opening of the USD and a short-lived session correction lower at the European sessions. The Euro's decline was a reaction from the weaker manufacturing data coming from Germany on top of the USD move that spillover to the EURGBP cross rate to follow-suit.

DOW Cruising Rally

Not Just Forex: 

The DOW and S&P continues to cruise towards making new highs at the beginning of the 3rd quarter. Entering the 1st days of the week already have signified the market's real sentiments at a significant sacrificial lamb for the USD still declining and opening a window of opportunity for the rest of its peers to gain more ground.

As CABLE have overtaken as the lead currency pair, alongside with the AUD (AUSSIE), and the CHF (SWISS) taking their cue on the USD weakness. And making 20 Pence for every 1 British Pound traded in the market since we called it; at these price levels can only get better while the market last. Cautious play can only be advised at this time!

However, the real highlight is still focused on our Stock Portfolio heading towards a remarkable price rally nearing the previous call we have made for the DOW @17000 and the S&P @2000 is in the making. Since it is a short trading week, we would be taking our end of the 2nd quarter trading break. As mentioned any positions left would then be carried-over for the third (3rd) quarter but likewise still be monitoring price action from the upcoming data.

Have a good 4th of July every one and again...ONLY THE BEST FOR YOUR TRADES!