Friday, October 20, 2017

BITCOIN Finds Relative Value as an ALTERNATIVE Investment

#BITCOIN have finally been making headlines as the Relative Value of the Digital currency has reached record levels above 6000 with a registered high at 6098.91 to date. It had gone though a series of market set backs from Mt. Gox and Chinese clamp down on exchange closures to Jaime Dimon fraud remarks of the digital currency. At the rate that prices are surging, and for as long as no market distraction would appear unexpectedly, USD6250 - 6780 would be an ideal objective compared to its current rate and momentum. 

Its extensions are well calculated to be nearest to the USD8000 levels, but with greater probability of increase volatility and could attract profit taking that would result to a heavy pullback once a sudden melt-up occurs. A cautious play on risk / reward has to be seriously considered at this point. 

Tuesday, October 17, 2017

#USD Back on Track with #CABLE & #EURO still on the Defensive

Fundamental Vs. Technical

The dynamics for the USD - DXY price recovery currently at 93.66 has not change in spite the fact that it did decline to its recent low at 92.74 basis point. Even when the USD declined since the 1st quarter period and continued its run down until marking a low at 91.01 last September; the DXY completion of its wide range has been validated based on our market call.

As the market prepares for the FED's December rate hike should support any corrective move for the USD from hereunto on top of President Trump's choice for the next FED chair. On the other hand, most technical chart configuration would result towards a probable full turn towards the higher in which it came from. 

Recent data from the US side were favorable, but the Sterling Pound found it difficult to support UK CPI which met expectation figures. GBPUSD is back below 1.3180 and may retest recent price at 1.3027 after coming from a 1.3328 daily high; thus providing a good lift for the USD - DXY back to 93.66 to this writing. Issues on BREXIT has been keeping CABLE more on the defensive even when it climbed above the 1.3300 levels which is now considered to be just a relief price recovery. Daily session HI/LO is a normal pattern as traders struggle to take positions ahead of data coming from the US.

The European majors particularly the EURUSD is having difficulty of sustaining a full recovery as both fundamental and technically driven market is heading towards a neutral to more bearish outlook in the mid-term. This should be given some serious consideration that prices would trade in a narrow band that can trigger further declines.