Wall St. has every reason to celebrate the Dow's recent gains from last Friday's NFP report that led it back above 18100 levels. A retest of its previous high @18288 may well be made this trading weeks ahead whenever a USD move would align in the same directional trend higher.
This has given the USD valid reason to hold lost ground and move higher at the opening of the Asian trading session. In the course of price action but not limited to the technical Gartley formation previously discussed; the DXY higher opening levels is directly related to the Dow's last Friday's stronger closing which provided an incentive for investors to see a continuing direction for stocks. A lot of disappointed analyst that has been calling a major Dow decline faces the ever ending question when will this occur?
Watch for the re-surging volatility and fundamental drivers that may unexpectedly show the coming weeks. For now the DOW and again the USD should be monitored well as they are our main deceive market indicators. This is on top of the recent rate cut from China over the weekend Sunday as giving more flexibility for banks to provide a competitive interest rates adjustments for deposits and encourage better relations for credit and loans to pickup that would counter a slow growth for the year.
This has given the USD valid reason to hold lost ground and move higher at the opening of the Asian trading session. In the course of price action but not limited to the technical Gartley formation previously discussed; the DXY higher opening levels is directly related to the Dow's last Friday's stronger closing which provided an incentive for investors to see a continuing direction for stocks. A lot of disappointed analyst that has been calling a major Dow decline faces the ever ending question when will this occur?
Watch for the re-surging volatility and fundamental drivers that may unexpectedly show the coming weeks. For now the DOW and again the USD should be monitored well as they are our main deceive market indicators. This is on top of the recent rate cut from China over the weekend Sunday as giving more flexibility for banks to provide a competitive interest rates adjustments for deposits and encourage better relations for credit and loans to pickup that would counter a slow growth for the year.
This move have been a market neutralizer for the China stocks and Hong Kong to make adjustments that saw Asia opening on stocks to move in the same upward direction the same way Wall St. finished with a positive tone last Friday.
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