#EURGBP Cross Benefits from Price Action
Surrounding the USD rise are well supported by several factors. Not necessarily in their respective order starting of with the decline in precious metals as Gold prices currently moved lower trading at 1209.81, with Crude Oil moving back down from expected inventory levels and OPEC members and non-members uncertain on continuing production cut commitments is at 52.50.
A positive figure from the ADP report showed that private payroll grew by 298k in January, compared with the consensus of 184k. Meanwhile, in the UK, PM Theresa May's meeting with the House of Lords have failed to provide the lift for CABLE and have traded to its lowest levels at 1.2138 with a slight session relief recovery above 1.2170. Further weakness on CABLE and with the EURO slightly holding on at 1.0550 have provided some lift for the EURGBP Cross reaching the 0.8668 price recovery; after a 5 week cluster trade with a weekly session low at 0.8400 of Feb 19, 2017.
Thus, the technical side of the trade supported by two (2) identifiable indicators that overlays its directional trade signal. However, the prevailing fundamentals have been more influencial with the EURGBP Cross direction and its respective price behavior.
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.
MEGATRADE101.com - The Business of Making the Right Trading Decisions Beyond Charting & Price Action Analysis
EURO well supported from ECB Mario Draghi as a result benefits the EURGBP Cross trading above 0.8700. And CABLE continues it weakest levels at 1.2133. A good signal in spite of the strength with the US Dollar. Right on the money for both angles of the trade including the DXY!
ReplyDeleteEnding the week of March 10, the EURO marked a high at 1.0700 from Draghi's upbeat forecast for 2017 growth and inflation. Making the Euro the strongest currency over the USD for the week. This resulted a spill over price increase for the EURGBP at 0.8782 high from the time we called it last March 08, 2017 before the market moved on the 10th of March.
ReplyDelete