With the ECB directive to make known its intentions of backing off on stimulus would now make a higher probability for the EURUSD to continue back down from its original trend especially the current price is way below the all important level of 1.1880.
This would provide a mid-term price recovery for the USD as renewed insight of the next US FED Chairman and rate hike expectations in December would be supportive. The exception for CABLE may hold steady to higher compared with the Euro and Aussie Dollar, as expectations for renewed talks on rate hike talks increases. This is also on top of the continuing daily weakness of the precious metals that gives a steadier tone for the USD.
Market Update as of Oct 27, 2017
Price Action Speaks Better than words!
Fundamentals Back up Technical. Market & Price Call VALIDATED.
EURO below 1.1600 while DXY at 95.05/15
As of Oct 26, 2017
Chart Comparison between EURO & USD Index
Inverse Price Relation & Formation
Besides the technical formation on the daily #EURUSD shall confirm these market outlook by the time it does prove to make itself further south of the current prices. The mirror image of the EURO versus the USD Index may prove to be quite an interesting formation to say the least.
As there are two (2) similar complex H/S on each currency reflecting a bigger & smaller formation that provides contradicting price movements that serves as a misdirection for traders. These signals can only be validated after the fact and the market is just waiting for such price action to occur.
PRICE UPDATE: EURUSD AT 1.1629, GBPUSD AT 1.3095, USD INDEX DXY AT 94.88 Market and Price Call Validated.
ReplyDeleteFinally, the 3.0% rise on the US GDP figure just fueled the US Dollar Index above the 95.05 basis point levels. While the Euro plunged below the 1.1600 with a low at 1.1588 and the Sterling Pound is trading at 1.3085 with a low at 1.3070 as of this writing. Market & Price Call has now been VALIDATED!
ReplyDeleteAs of Oct 27, 2017 report of the US 3.0% GDP rise the USD primary reaction to breach the 95.05/10 has been made along side the EURO immediate price reaction from the ECB holding back bond purchases have driven prices below the 1.1600 levels.
ReplyDeleteValidated as it may have been any first price reaction and break would prove to have a counter reactive move that would pullback prices thereafter. However, the first week of the new month would dictate the re-direction of sentiments into the market So far, so good and would be checking how the commitment of traders report would weigh on volumes and open interest among others.