Ripples Across Major FX Currencies
Starting off with Federal Reserve-Chicago Charles Evans turning to a hawkish stance who is known for being a dove, is just one contributing factor for the USD lift. The Foreign exchange market have been quite busy across the board which summarizes the following market activities that actually gave the USD - DXY a push towards the 96.00 basis point levels from the 95.17.
> CABLE or the Sterling Pound have continuously been dampened with a No Brexit deal while awaiting UK GDP report. GBPUSD is currently at 1.2772 way past it psychological support price at 1.2880. While the EURGBP Cross at 0.9000 have benefited from CABLE's weakness in spite of the recent daily session relief from the Euro.
> Except EURUSD have just broken through the ground trading to this writing at 1.1455 where it's aiming at another psychological barrier support at 1.1380 which is not to be discounted as the USD gains momentum to further rise in the near term.
> USDJPY has been aligned with a USD strength as it benefits from a safe haven status whenever turmoil in the currency market are present while trading at 110.68 from a recent high at 111.51 for the week as of Aug 10, 2018.
With Trend-following #PRICE #ACTION:
ReplyDeleteA. In a Rising market always look at the support levels.
B. In a Declining Market always look at the Resistance Levels.
C. As it avoids creating a "Bias Market Sentiment" and make necessary adjustments to "Adapt" in any market condition whenever called for.
Note: A #Trend #Reversal is Approach in a different process
Now as of the week ending Aug 10, 2018 the DXY have registered a high at 96.45 right back from its mid-price point after its record high of 103.82 last January 2017 and a low at 88.25 which is a 15.57 bp range from its High & Low and 96.04 is its average price level.
ReplyDeleteA Classic Fibonacci retracement level equivalent to its 50% HI/LO range levels. For a better understanding pls visit our reference market call.
Strategies: USD Probable Turn in the making dated Feb 21, 2018
Link: https://megatrade101.blogspot.com/2018/02/strategies-usd-probable-turn-in-making.html
EURO hits its target levels at 1.1379 to this writing as we have indicated in this market outlook as of the Asian opening session Aug 13, 2018.
ReplyDeleteThe opening 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!
Staying on course the USD DXY has been the right decision up until now. Where the registered high marked in the US session at 96.98 have been supported by strong retail numbers. However, the case maybe is the fact that the YEN have generated quite an attention with the USDJPY marking a 111.43 high and is currently trading at 110.63 levels. Risk aversion is one of the real reasons for market volatility as traders have been following the up/down swings in the market.
ReplyDeleteBut US equities have found other reasons to drift lower where the DOW is down triple figures back to 25032.34, SP500 at 2809.00, & NASDAQ at 7753.88. The trade retaliations from Turkey doubling up in triple percentage on certain goods from the US which have added more towards sentiments rather than figures. This is because the US imports much lesser from Turkey and would not even dent GDP figures.