The end of the 1st quarter trading is just around the corner, and the USD has set it initial cap at the 103.55/82 level range with a secondary high at 102.25/95; while the current low is set at the 99.43 - 100.72 basis point range for now. Price action dictates that there is a cluster formation putting pressure on the USD limiting its upward momentum, apparently with less or no encouraging fundamentals to support a lift.
There are Technical overlaying formations well within a rising channel, which validates that any corrective move is part of major trend direction, but may provide a distinct outlook that may be deemed a major correction in the making. And this will be reflected within the 2nd quarter trading of 2017.
Nearing the new month of April and the opening of the 2nd quarter, the USD's probable weakness would continue to do so in the first two weeks of the new trading month as a retest for the USD to go further would well be supported with the price recovery for Oil and Gold prices to start with.
Although, the case scenario for a pullback higher would also not be discounted as the overall trend direction is still intact. Any major corrective move is part of the market price swing as the market's price adjustments continues with foreign currencies aligns with the USD levels.
The ability to identify chart formations & price patterns will increase trader's / investors probability of success in trading volatile markets. And when one does you'd know that you are on the right side of the trade.
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ReplyDeleteIndeed a major corrective move in Asia as the USD - DXY opened with a gap that triggered a low at 99.25 slightly off our mark at 99.45. The Healthcare vote was ahead the cyclical price move which may provide an extension of the selling pressure.
ReplyDeleteWhile the Yen gains from 'Alternate Trade Strategies' that we have always been advocating as alternatives are open for investors to do what is a smart way to play volatile markets.
EURO & CABLE have met their respective levels of defense and retreated to their current price levels with the EURUSD @1.0730 from a high @1.0905. While CABLE resisted a comeback @1.2615 and trading @1.2489 from a dip @1.2376 forming a 'Doji' at current levels signifying a pause is in effect.
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