Thursday, February 4, 2016

Investors Reacts to USD Decline

 Correction Validated 
DXY As of 2.04.16
Navigating Through Market Volatility:  The USD (DXY) is setting a new low @96.63 basis point, and the direct effect were reflected  with the EURUSD as it broke above its daily price consolidation levels @1.0880 and is currently @1.1180 as of writing. This can be attributed to the FED comments, which some traders see a more speculative reaction which can be considered overdone due to a rapid price decline.

Meanwhile, CABLE is barely keeping pace with the EURO with an exception that it registered a soft high @1.4665  as it's price move is limited due to mix fundamentals on the BREXIT floating in the market. And the same mild reaction is reflected with the EURGBP cross which has not made any serious attempt @0.7755 high which serves as the near term price resistance. The only time it would do so is whenever a probable corrective move for CABLE occurs as market volatility shifts with volume and investors flows in /out of stocks. CABLE attempts its range @1.4750 - 1.4830 which would be supported with enough momentum and volumes unless new fundamentals develops.

Correction in the making 
DXY As of 12.16.15
This is the 1st signal of the chart pattern of US Dollar as of 12.16.15 which is now being validated with two consecutive days of price declines. Although, the signals were there the overall picture remains intact but as we always say there will always be a major correction within a major trend.

Considering the decline is more fundamentally motivated the high from 2015 serves as the new high, while the current low @96.63 is being set as the fresh new low. The market insight here is the "Alternating Currency" moves which reverted back to the US Dollar along side the price recovery of OIL and GOLD.

This strategy applies when market shifts are in-front just waiting to be recognize. This USD decline is well respected where the financial USD (DXH16) & EURO (E6H16) Futures March 2016 contracts were properly utilized during the daily price consolidation period. Taking a cue from market volatility and other markets accessible for trading. Navigating SPOT / FUTURES Markets can best be managed knowing the CORRELATION of trading instruments accessible to tactical investors with self-directed accounts.  

Corrections on the date & Label were made on the charts. Thank you!

Best Reference Video: Forex Trading SPOT vs. FUTURES 

No comments:

Post a Comment