Friday's GDP figures will be the highlight along side the earnings data & reports within the week. Currently, USD DXY is at 93.92 (Tech chart formation: inverse H/S Formation) with a session high at 94.00. Let's see if and when price action from this formation can gain a technical market reaction in the coming trading sessions. The opening price gap were influenced from the #USDJPY that traded to a high at 114.00 and currently trading at the 113.73 levels.
Japan's election have given PM Shinzo Abe a vote of confidence that saw the Nikkei 25 reaching 21723.60 in the Asian session. Traders were again in the carry trade position mode as favorable swaps can be made with the AUDJPY and GBPJPY in play. For as long as a follow though on the USDJPY continues, the DXY shall in turn will be supported with an initial objective set at 115.50 - 116.00 in the near term.
For now, the USD is more sensitive with the nomination of President D. Trump for the next FED Chief coupled with the earnings report and the GDP figures. The price alignment for this to happen should well be that the USD DXY would be at the 95.05 equivalent to the USDJPY nearest to or equal to the 115.50/60 levels +/-
A Classic Tech chart of an 'inverse H/S formation can provide a good directional movement but watch for some fake-out moves in the early European session moving forward as it is what traders in UK and Asian traders are quite known for. While the idiosyncrasy in the US market is a good 'Shake-out' from both bull & bear traps.
ReplyDeleteCautious trade is advise!
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