Fundamental Vs. Technical
The dynamics for the USD - DXY price recovery currently at 93.66 has not change in spite the fact that it did decline to its recent low at 92.74 basis point. Even when the USD declined since the 1st quarter period and continued its run down until marking a low at 91.01 last September; the DXY completion of its wide range has been validated based on our market call.
As the market prepares for the FED's December rate hike should support any corrective move for the USD from hereunto on top of President Trump's choice for the next FED chair. On the other hand, most technical chart configuration would result towards a probable full turn towards the higher in which it came from.
The European majors particularly the EURUSD is having difficulty of sustaining a full recovery as both fundamental and technically driven market is heading towards a neutral to more bearish outlook in the mid-term. This should be given some serious consideration that prices would trade in a narrow band that can trigger further declines.
The European majors particularly the EURUSD is having difficulty of sustaining a full recovery as both fundamental and technically driven market is heading towards a neutral to more bearish outlook in the mid-term. This should be given some serious consideration that prices would trade in a narrow band that can trigger further declines.
EURUSD Price Update as of 10.25 still below 1.1750
Recent data from the US side were favorable, but the Sterling Pound found it difficult to support UK CPI which met expectation figures. GBPUSD is back below 1.3180 and may retest recent price at 1.3027 after coming from a 1.3328 daily high; thus providing a good lift for the USD - DXY back to 93.66 to this writing. Issues on BREXIT has been keeping CABLE more on the defensive even when it climbed above the 1.3300 levels which is now considered to be just a relief price recovery. Daily session HI/LO is a normal pattern as traders struggle to take positions ahead of data coming from the US.
Recent data from the US side were favorable, but the Sterling Pound found it difficult to support UK CPI which met expectation figures. GBPUSD is back below 1.3180 and may retest recent price at 1.3027 after coming from a 1.3328 daily high; thus providing a good lift for the USD - DXY back to 93.66 to this writing. Issues on BREXIT has been keeping CABLE more on the defensive even when it climbed above the 1.3300 levels which is now considered to be just a relief price recovery. Daily session HI/LO is a normal pattern as traders struggle to take positions ahead of data coming from the US.
Friday's GDP figures will be the highlight for the week along side the earnings data reports within the week. Currently, USD DXY is at 93.92 with a session high at 94.00.
ReplyDeleteA mix currency market yet Euro still in defensive play as ECB holds back Bond purchases. #EURUSD at 1.1776. While #GBPUSD recovers from renewed talks on rate hike moving forward.
ReplyDeletehttps://finance.yahoo.com/news/euro-firmer-ecb-decision-dollar-off-3-month-012622790--finance.html?soc_src=social-sh&soc_trk=tw via
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.
ReplyDeleteThis would provide a mid-term price recovery for the USD as renewed signs of the next US FED Chairman and rate hike expectations in December would be supportive. With the exception for CABLE that may hold steady to higher compared with the Euro and Aussie Dollar, expectations for renewed talks on rate increase.
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 V the USD Index may prove to be quite an interesting formation to say the least.
ReplyDelete