EURO hits its target levels at 1.1379 (Validated) as of this writing, we have indicated in this market outlook as of the Asian opening trading session Aug 13, 2018. Although, we considered this as a 'delayed price reaction' just waiting to occur.
As the divergent trend regression between the USD Index and EURO was 'identified ahead, since last Aug 03, 2018' compared with the current market price action when the DXY was at 95.10 and the EURUSD was at 1.1660 levels respectively. With the DXY marking previous high at 96.45 ahead of the single currency last Friday. Thus giving swing / day traders ample time to take action as the signals where clearly present.
As the divergent trend regression between the USD Index and EURO was 'identified ahead, since last Aug 03, 2018' compared with the current market price action when the DXY was at 95.10 and the EURUSD was at 1.1660 levels respectively. With the DXY marking previous high at 96.45 ahead of the single currency last Friday. Thus giving swing / day traders ample time to take action as the signals where clearly present.
Divergent Trend: DXY & EURO Price objective
The 'OPENING Price GAP' on the EURUSD at the aforementioned price level at 1.1371/80 with a low at 1.1368 would give the market a greater probability to have a daily session relief recovery and/or a considerable pullback from market capitulation.
As a widespread contagion of the overall bearish markets in the Asian region which includes equities can be seen across the board. Bearish sentiments from US equites decline have spilled over and would likewise remain for now until a new tide emerges. A cautious play is advised with increasing volatility in the financial markets exists!
A special mention is in order indeed, much thanks to Ray Dalio of Bridgewater who have called on a market call on Equities both the US and European markets to shift into bear mode particularly on the Euro. This led us taking a considerable rebalancing of our portfolio into the USD long position and Currency Put Options on the European majors.
ReplyDeleteAnd this is quite a walk through, with lady luck on our side of the market would not be possible not to mention the tragic depreciation of the Turkish Lira which wasn't in the newswire then. Although, having to capitalize being on the right side of the trade should always be considered when the right timing comes along.
After a #Fibonacci 50% retracement objective between the USD High & Low #DXY is at 96.51/60, first line of defense, expect daily session corrective moves. Pared gains from initial price recovery should be monitored. Same expectation goes for the #BBDXY coming from 1194.21 stretch.
ReplyDeletehttps://plus.google.com/+JSTAlexander/posts/JYV8HKXyC6v
From the Opening Gap and market call for the EURO at 1.1380 with a low at 1.1301 was indeed an exhaustion gap. Currently the price levels at 1.1626 would have provided swing traders a considerable over 300 pips move for the taking.
ReplyDeletePay close attention to the OHLC prices from the trading platforms. It would best be advisable to have at least two reliable trading platforms to compare price accuracy and see their discrepancies especially between the three major market sessions.
ReplyDeleteReference & Guidelines on Trading the Foreign Exchange Market
ReplyDeletehttp://www.megatrade101.com/index.php/guidelines