The Sterling / Swiss Cross rate's resiliency even after CABLE's corrective decline from missing retail sales expectations have continued to dominate well within its near term trend direction. With the GBPUSD reaching a crucial resistance levels at 1.4375/80; it had limited effects on price action as the USD index (inverse price relation) have been on a struggle to continue its consolidation well within a tight range.
In spite of this condition, the #USDCHF likewise managed to rise to a significant level as indicated on the chart above, with a probable retest at the parity level while still trading at 0.9710 to this writing. Especially coming from a well technically motivated support price range at 0.9200 - 0.9305 which may also serve as a double bottom figure so to speak.
Meanwhile, when market conditions on the European majors does not change from ECB Mario Draghi that may influence not only the #EURO; the GBPCHF Cross currently at 1.3768, but at the rate its moving would eventually retest its initial target levels at 1.4360/80 range in the near to mid-term outlook. This could lead to a scramble between the major Cross rates once any sudden changes on the EURO occurs.
The major pair's behavioral pattern and price action are confined within a major channel higher relative to its near term lower highs nearing the parity price levels with the USD. The USD have found a catalyst for a firmer tone in the form the 10 year US Treasury yields nearing the 3% threshold. This enabled the relative rise for the DXY back to 89.95 bp as of late Thursday US session. The week's closing will provide a better market outlook moving forward
For the time being, the market's sentiments would continue its course in the FX market. However, major market participants have been carefully watching equities and commodities as oil and precious metals are gaining grounds while US equity indices are still in a roller coaster ride with prices moving in both directions.
Meanwhile, when market conditions on the European majors does not change from ECB Mario Draghi that may influence not only the #EURO; the GBPCHF Cross currently at 1.3768, but at the rate its moving would eventually retest its initial target levels at 1.4360/80 range in the near to mid-term outlook. This could lead to a scramble between the major Cross rates once any sudden changes on the EURO occurs.
The major pair's behavioral pattern and price action are confined within a major channel higher relative to its near term lower highs nearing the parity price levels with the USD. The USD have found a catalyst for a firmer tone in the form the 10 year US Treasury yields nearing the 3% threshold. This enabled the relative rise for the DXY back to 89.95 bp as of late Thursday US session. The week's closing will provide a better market outlook moving forward
For the time being, the market's sentiments would continue its course in the FX market. However, major market participants have been carefully watching equities and commodities as oil and precious metals are gaining grounds while US equity indices are still in a roller coaster ride with prices moving in both directions.
The USD have found a catalyst for a firmer tone in the form the 10 year Treasury yields nearing the 3% threshold. This enabled the relative rise for the DXY back to 89.95 as of late Thursday US session. The week's closing will provide a better market outlook moving forward the end of the first month's trading for the 2nd quarter.
ReplyDeleteHaving patience in this market eventually pays off with the USD regaining its strength while trading at 90.33 as of April 20, 2018 to this writing. As mentioned the DXY have gained traction from the US Treasury yield nearing its 3% threshold as the main catalyst for its tight yet good recovery effort.
ReplyDeletePosition trades on DX futures and PowerShares UUP prices at 23.71 have gained ahead compared with Spot prices. A welcome treat after trade executed covers a three month period from the week of February 16 with a price recovery on the way up after marking an 88.25 low. A great indicator moving forward for this 2nd quarter 2018.
ReplyDeleteIndeed, the trade war and fears of inflationary effects on the overall market sentiments remains. However, finding other probable reasons or catalyst that may change price direction even for a temporary stand point.
ReplyDeleteWhich in turn can make a difference not only in price and analysis but with the trade position's underlying value given the right trading window to do so.
April 23, 2018 - Staying ahead of the market is an advantage but not to be completely complacent.
ReplyDeleteOne week before April close the #USD would remain above this levels to sustain its recovery.
Tracking #ICE #DX futures #VOI trailing Spot #DXY crucial to determine trend direction. DXY at 90.70 basis point.
Yes, indeed USDCHF (US Dollar / Swiss Franc) have reached above 'PARITY' levels as stated in our market call dated April 20, 2018. It is currently trading in Asian session at 1.0011 coming from a long stretch at 0.9305 since February 2018. These prices now have VALIDATED our Market Price Call.
ReplyDeleteThe USD remains firm even when European markets would be on a holiday; FX markets for now have remained quiet with the underlying sentiments for the USD hold. Comparatively weaker with the YEN as a corrective move down to 108.65 occurred from the prior week.