Tuesday, July 24, 2012

Forex Price Equilibrium

Its that time of the cycle year when we have to do some due diligence analysis as to where and how global prices of world currency rates fair compared down to the very basic commodity prices. However, the balance of trade amongst the largest economies and emerging markets worldwide are taking up necessary steps & measures avoiding going back to recessionary periods and the global financial crisis of the past. Austerity programs in the European continent is underway with Political policy changes to go alongside with it. Although, the crisis has now rekindled previous resolutions that would try to resolve other European neighboring crisis in other countries have again retested investors confidence in the financial marketplace. This is on top of the Middle-East uncertainty from the Iranian sanctions to the political crisis in Syria with China and Russia pulling their veto strings towards a possible resolution.
With the three major economies deploying strategies like the US QE measures, Japan's repurchasing programs and a slowdown in China has kept a slow global growth indicating investors to do the same in terms of trading activities. Thus making liquidity flowing in the financial markets across the global economies. But even with these measures the trading volumes have declined while investors shifting to the world's Reserve currency and US Dow Jones have reached its current levels in this kind of economic conditions.
The foreign exchange market prices have come to another pivotal point in time where current prices are now at the verge of global price re-alignment in the forex market or in simple terms an equilibrium level where prices would have to re-adjust through market forces before a major market movement would occur contrary to or a continuation of its current trend. There will always be a major corrective move within any major trend either way on its way up or down. Pls. observe the prices of the EURO, EURGBP cross and the USDx price levels dated September 13, 2010 in this article / video and compare the price levels currently in today's markets. The indicators used are one and the same and should assist in being able to determine as to which direction the markets would probably bring to the table for the next best currency to trade within the upcoming major price fluctuation.
Related article: Before a major market action occurs 
                   : FX Trends & Market Opportunities

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