CCY Corner: #USD #DOW Comparative Analysis

The US DOLLAR Index held its lift during the close of last week and clearly heading nearest to the 95.05/10 basis point objective unless unexpectedly derailing its course from any European price recovery.

Although, the pressure for the European majors continue to support bear sentiments as the EURO  re-enters a price below the 1.1380. While CABLE have lost steam and retreats towards the 1.4350 levels. Price extensions for both CCY pairs would dominate when the DXY enters its trade above the 95.05/10 levels mentioned.

Note that tools of the trade are simply lagging behind price levels and should only be considered as reference. As these indicators serve as a mere guidance, while considering other equally important trade analysis is being made. Its not the trade alone but the strategy that positively deliver best results. 

Pessimism has overtaken positive outlook from a near attempt last April above the 18050. And drifting prices have remained its direction as the market's sentiments on major retailers have turned negative. For now, this would spill over and dampen a relatively good recovery for the DXY with momentum gains over the past trading week. Thus considering the Dow's daily technical outlook & market perspective changes gradual flow of capital flight towards other instruments are being monitored.

Given this case scenario, the application of the 'Law of Averages / large or contracting number of volumes from a diminishing outflow of investors interest in the markets would seriously be considered into the equation.