Wednesday, March 1, 2017

Aftermath of #USD #Price_Correction; A Continuation Follows Major #Trend_Direction

Market participants got what they were waiting to hear from President Donald Trump speech which have fueled a positive price reaction for the USD. The DXY have been waiting for some incentives to push further its price recovery after the recent decline. And is currently above the 101.85 initial resistance levels.

DXY Overlay SP500


With the FED's policy-makers positive statements, the probability of a March rate hike have increased & well around the 80% range prividing a lift for the USD in the early US session. With this came the relative weakness of the European majors that reflected a decline for the EURO @1.0525 and the GBPUSD below the 1.2300 leaving enough room lower after the recent recovery from the USD decline. This price turn around have been likewise anticipated as the USD index would benefit more from the odds of a rate hike and an affirmative tone coming from President Trump's speech.

6 comments:

  1. With the US Major Indices making record highs, would it be nicer if and only if the PSEI can do at least a fraction more from where it is now! US-Asian / PH Investors have taken the lead. Step-up into global trading standards and learn how to take advantage of these market movements especially for PH main-street investors / traders.

    Let's watch how PSEI reacts to a Triple Digit Advance or would we still witness an extended Divergent Trend again? Remember it doesn't have to be that way.

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  2. As we mentioned, the market has spoken! A triple digit advance is well respected while keeping a closer look for any probable pullbacks during the sessions hereunto. Still take it as a learning process as it can only get better in time.

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  3. What we can take from this market is the 'Patience' and the 'Acceptance' to adapt with 'Respect' what the prices offers. The general trend has not change except for price correction along the way while it turns back and resumes its directional trend. In essence, trading has become an investment strategy that has been defined with 'Time & Price.'

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  4. Brief Insight: US MAJOR Indices Vs. ASIA - PSEI Performance
    As US major indices are tracked and traded through their respective ETFs have been ahead of the pack in terms of gains from tech stocks which have been boosted with higher prices and earnings reports.

    The record levels set by the DOW @21169 this year from 15370 in Aug 2015 & 15470 last Jan 2016 respectively have reflected the strong presence of secular forces at work pushing the rally at their highs. The timely shift was attributed to identifying investors outflow from FX trading to equities as we've taken our cue from the CFTC - VOI, Options and Futures markets just to name a few applications used.

    https://plus.google.com/u/0/+JSTAlexander/posts/jTHFZnkwwM4

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  5. On the contrary USD still resilient in spite of a widened Trade Deficit to USD -48.5b in January versus expectation of USD -47.0b. That's a 9.6% rise from December's USD

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  6. Important Note: The USD -DXY and the Major Indices has set their floor price levels during the 1st quarter of 2017 respectively. The US Dollar Index (DXY) is at 100.00 basis points, while the DOW initially can be set at the moment with two major floor prices, 1st level at 18500 and 2nd level at 19750. These are the three levels that have been identified.

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