With the Japanese Yen still gaining ground on its value the USDJPY just broke the 110.00 levels and its currently at 109.89 aiming the 107.80 - 108.00 range on the way lower with an extension that may not be discounted to surpass these levels. The USD's continued weakness has been the dominant factor in the Yen's rise as it is supported by strong PMI & Japanese exports on top of Yen repatriation gradual flow into equities contributed to the appreciation as a whole. Although, the NK225 is on a corrective mode price at 23941.11 from a high at 24129.34 due in part to the USDJPY decline as of today's market movement.
The DXY is at 89.90 as of this writing. And at the rate it's going the 87.50 - 88.80 basis point range is simply a stone's throw away from its objective. On the other hand, this also provided other markets to catch up on the US Equities all time highs and directional movement as an overall picture taken into account. And more importantly the European majors like CABLE and the EURO have gained so much from where they both started during the last quarter of 2017.
ASX 200 Index
One of our market insight on the currency front is the AUSSIE Dollar rise as the ASX 200 index have also benefited from the USD weakness but more importantly Australia's growth have proven to take shape as the index have rallied to its six month high and stayed above the 6000k key price level.
For the better part of the 1st quarter, we remain well within our time frame mentioned in our previous market outlook heading towards the 2nd quarter mid-year market shift as it now takes just about that period of time for the currencies to make a considerable move to really make a well informed trading and turning trades into an investment position particularly for CABLE, AUSSIE Dollar and the USD Bearish ETF to name a few.
Excellent Reference:
USD Where it came from and where its heading!
Market Insight: USD EURO CABLE AUD JPY
USD Where it came from and where its heading!
Market Insight: USD EURO CABLE AUD JPY
USD: Then & Now 2
ReplyDeleteIs an 'Alpha-Cross Related Trading & Investing Strategy' in place that Megatrade101 has always emphasized to our valued clientele. These are all correlated with a single principle in mind in preserving and building up equity on what has been an effective relevant strategy until today.
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Take note, that these are the times wherein most lagging indicators would not be as effective as they would be used due to the fact that markets are driven by volumes and price momentum. Even when the most popular technical tool like the relative strength index or RSI and Stochastic may well be over extended in both areas of directional movements.
ReplyDeleteHence, Price Action in its true form would be ideal to use with volumes, momentum, moving averages and VOIT for futures market. These reinforced markets are backed by secular forces based on fundamentals and momentum drive by market sentiments.
As most traders nowadays have disregarded the VIX as a measure for the market turns. Textbook analysis can best be put aside for the time being. As these 'Exceptional trading times' will surely be added in the books.
If Ray Dalio of Bridgewater called it 'Goldilocks period' MegaTrade101's term would be called as the US and European counterpart as a 'Perennial Rally' in the Asian market.
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.
ReplyDeleteThe 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.