Market Recall: US Dollar dated Sept 2017
#DXY Index as it speaks for itself.
VALIDATED as of January 26, 2018
Keeping an active journal is part of due diligence!
#trading #investing #strategies - For the right Reasons
A more positive tone from European data have pushed the EURO to 1.2527 near its 2nd line of defense as UK GBP bounces 1.4345 during the session. Both ECB Mario Draghi's comments and US Treasury Secretary Steven Mnuchin have completely dragged the USD lower.
The USD - DXY is trading at 88.57 with a session low at 88.43 well within our price call. It would now take some time for the USD to recover which can drag all the way to the mid-year at the rate it is going. Further extensions are expected before any relief recovery can be expected to turn until a substantial short-covering volumes appears.
The USD - DXY is trading at 88.57 with a session low at 88.43 well within our price call. It would now take some time for the USD to recover which can drag all the way to the mid-year at the rate it is going. Further extensions are expected before any relief recovery can be expected to turn until a substantial short-covering volumes appears.
Knowing these indices correlation with one another and how to apply their weighted average in real time trades is narrative into actual market price action is key to a successful trading journey.
USDJPY continues its course as it marks a low at 108.27 well within our price target levels. Although, the market is not even convinced of President Trumps further saying that a stronger USD is still favorable moving forward. As short live relief but would not derail the market's direction.
ReplyDeleteMeanwhile, US Equities are still on the rise marking record levels contrary to a minimal miss on the GDP report. However, as far as the corporate CEOs in Davos generally has good words for the tax reform and plans for building back into the US was a real welcome sign for Trump as he continues to invite to invest in America.
The detailed DXY chart dated June 3, 2017 came from Megatrade101 collective trading journal as one of the most effective and still relevant market analysis derived from its inception date until today.
ReplyDeleteAs the USD depreciation has delivered a substantial appreciation in value in our trade positions into the early 1st quarter of 2018. The USD Index has always been our primary market indicator above all others.
And once done right in the 1st place the probability of getting subsequent trades right follows. Although, market conditions do change it is always prudent to make necessary adjustments when called for.
The dynamics of a trade position on the USD is knowing when such a trade becomes an investment strategy. A clear example is maximizing the #UDN ETF nearing our first year anniversary in March. While a quarter Roll over on DX Futures contracts before each quarter expiration can increase the fund equity / liquidity & leverage of the portfolio.
ReplyDeleteWith that said, the delicate time to maneuver these trade positions near the end of the first quarter period takes place. As we draw a lock-in strategy in the USD when its time to make the counter trade position reflecting a reversal in the making.
This is the 'True Essence' of trading and investing in combining equities with the liquidity of the foreign exchange market. As the effectiveness of the knowing the USD trend direction and market behavior' correlation towards other influential factors determines the end result of an investors financial objectives.
Its always the strategy that counts as we adapt to market changes whenever necessary.