DXY - USD index have re-established a weekly high @98.57 breaking its previous high and on its way towards the 99.00 basis point handle where it finds a resistance. thus leading the #UUP - Power Shares DB Bullish Fund slightly above the 25.47 nearing the target level @26.00 last seen January 29, 2016. The resiliency of the USD has drawn quite a good sentimental support from bullish players for the USD as the European currency majors continue to dwindle lower with the #EURO taking a considerable beating below the 1.0900 started from the US session that carried it thru in early Asian session. However, nearing an end of the month's trading the probability of daily pullbacks would not be discounted with the USD index holding a 97.92 low, the EURO @1.0850 while making an early price recovery signal.
Price action has remained in negative territory for the European currency pairs until such time a good fundamental arises. So far we do not see any forth coming knee jerking moves to state a strong price recover. The same manner we have stated with US Equities. That any incremental declines including the recent drop below the 18k had served to be a mere corrective move as stated in our previous blogspot ' Consolidating pattern within Directional Trend.
Link: https://megatrade101.blogspot.com/2016/09/consolidation-pattern-within.html
Cloud Chart Comparison DXY & UUP
https://www.tradingview.com/x/srM0q5eM/
This is also where 'Hedging' devaluating currency value in European and Asian nations can use as a strategy to protect international currency exposure with the aid of the USD strength. Especially for those who happens to have a greater international or USD Debt Ratio for businesses that are susceptible to adverse exchange rate fluctuation.
ReplyDelete#USD Index on track while #DOW trails behind lackluster trading. Incremental net positive change slowly building momentum before real price action occurs. DXY holds its resiliency ahead of equity market
ReplyDeleteYes! USD Index Hits 100 and UUP nearing 26.00 objective on this rally!
ReplyDelete