Follow where CONVICTION is stronger!
To no surprise, the market place have reflected price volatility as a common ground with the current price action in the US trading session. US equities particularly with the DOW's failure to stay afloat above 25k is swaying from triple digit changes between highs and lows which comes relatively easy and see investors shifting gears or simply changing hands quickly with price action narratives.
Especially with the most recent report on the President's steel and aluminum tariff plans drew a quick rebuttal plan of action from the EU counter balance and have made the markets react in both market directions. A probable Trade War in the making have already proven depressing for the USD Index which also slipped below 90.05 losing momentum from the previous move and trading at 89.61.
No different with the FX / currency market where we have seen a quick turn around for the EURO when it marked 1.2180 with a low at 1.2154 level, CABLE at 1.3750, low at 1.3711 and the USDJPY at 105.50 with a low at 105.25. Which actually sparked a price recovery after marking our price objectives and is currently at 1.2410, 1.3883 and 106.20 respectively.
US #Equities spilled over the #NK225 and recovered to a high at 21551 just in time with the #USDJPY at 105.50 with an extension at the 105.25. This levels were practically aligned that is why we mentioned that a contrary move was indeed in the making. With the USDJPY making a price recovery trading at 106.20 motivated by a technical divergence
And this proves to be the #VALIDATION of both before and after the fact. A typical market play reflecting #VOLATILITY is present in both sides of the market. Friday's #JOBS report would be the clincher for the rest of the week.
And this proves to be the #VALIDATION of both before and after the fact. A typical market play reflecting #VOLATILITY is present in both sides of the market. Friday's #JOBS report would be the clincher for the rest of the week.
EURO would attempt nearest to the two previous highs at 1.2500 at the rate momentum builds and the USD index stays soft with US Equities on the retreat after making a triple digit gain at the earlier session.
ReplyDeleteFailure to stay afloat and above 25K for the week maybe deemed negative. Not unless a last session repeat of a recovery can be made by then.