Monday, January 15, 2018

European Majors Momentum Driven Market USD Weakness

With the USD still struggling to find a relief recovery have finally been taken over by the momentum driven trades from the YEN, EURO, CABLE, and the AUSSIE Dollar. It's like a concerted effort by the GANG of FOUR (4) as we call them in the interbank market. Initially leading an early stage with the Japanese Yen below the 110.50 levels for the past 6 trading days of accelerating value alone have actually led the pack as the rest followed suit.

While keeping tab at the USD weakness, Oil and Gold prices higher the selling pressure surrounding the DXY have made it harder for any immediate recovery. Although, we did mention that the probability would be towards mod-year term for a gradual move as the USD aligns itself for the next subsequent rate adjustments by the Federal Reserve.


Its has now 'VALIDATED' our market call on the USD Weakness Lifts Majors Higher dated Jan 02, 2018. With the EURUSD (chart above) near the 1.2280 high, CABLE at 1.3820 first line of defense, and the AUDUSD back to 0.7980 levels. Therefore, with the USD being our main valid indicator for currency trading when it moves more often than not the rest of it's counterpart moves in line with the corresponding value.

A more direct effect can be expected with the EURO as it carries a heavier weighted average distribution from the USD Index composition as indicated in the link provided for TSOT members access. It also shows the other relative importance of knowing how these distributions are reflected with the rest of the global currencies in Europe and Asia.

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1 comment:

  1. BUILDING WEALTH with ASSETS are GOOD but its even BETTER when LIQUIDITY is there when YOU CALL it.

    ReplyDelete