As CABLE prices recovers from UK manufacturing data, investor / traders shift gears lower for the EURGBP influencing the EURO's decline as of this writing. EURGBP @0.8406 levels at the early European session managed to stay at its low from the report.
With a positive report GBPUSD or CABLE trades @1.3245 a closely related mirror image of the EURGBP ( Click to see Chart). Although, early tech indicators have shown a small bearish triangle formation even before the report; all other factors related to a declining EURO based on their relative correlation have been validated. The direction of the EURGBP cross in this market condition: the process of monitoring how well CABLE can influence and could weigh more than the EURO. Thus keeping a lid on the EURUSD trading @1.1135 as of now.
Due to a wider range of these currency pairs heading into the US session, expect a reasonable price swing of volatility added into the mix. The prevailing sentiments remains until a new catalyst from fundamentals would again become a game changer. Take note that alternating trades between European majors will continue while the USD would keep abreast with the changing conditions from stocks and oil prices.
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Validated Market Call on EURO & EURGBP cross rate!
ReplyDeleteOne of the distinct behavior & idiosyncrasy of CABLE is to move pass a technically motivated two top formation that would signal bearish sentiment. This follow-through could provide volatility action in a firm fashion when it does.
ReplyDeleteLINK: https://dwq4do82y8xi7.cloudfront.net/x/y3365ISo/
MegaTrade101 VALIDATED MARKET CALL PRIOR JOBS#'S
ReplyDeleteDisappointing #JOBS 150k #USD at 95.20 declines, #Equities slightly higher on reaction, #CABLE at 1.3315 higher breaking from 1.3180 - 1.3245; #EURO surges nearing 1.1250
https://twitter.com/MegaTrade101/status/771688907670818816
MegaTrade101 @MegaTrade101 · 13s13 seconds ago
ReplyDelete#CABLE follows through 1.3335 compared with #EURGBP Cross Rate mirrors below 0.8400 likewise VALIDATES CALL
LINK: https://dwq4do82y8xi7.cloudfront.net/x/GWHdcX0q/
The new catalyst from fundamentals just came from the ECB decision and Draghi's remarks but the market have only reacted barely a few up and down price swing while watching the USD price action.
ReplyDelete