Price Action Analysis & Insight: USD CABLE / EURO Cross

The USD remains strong and trades at the higher band of its range. As we have seen a Tug of War between CABLE and EURO; with the Pound gaining over its Euro counterpart in the early US trading session.

While the USD is expected to trade within its range, the preferential choice decided upon this kind of market condition is to go with the GBPEUR cross rate instead of the regular inverse rate of the EURGBP cross. The obvious reason for a positive swap on a daily basis is just one consideration. Yet the established trend remains favorable to the upside. With daily pullbacks to remain and should not be discounted to occur. And defining a counter trade strategy is in place as a cushion against any adverse price fluctuation versus the primary trade position.

Price channel 2 (yellow shade) is way above the price consolidation / range and have managed to move to higher levels not discounting the correction and nearing its initial new price range objective @1.4400 - to- @1.4480. A resistance may emerge as it moves to higher grounds with some selling divergence to occur at these levels. Profit-taking would meet fresh position players moving forward. Wil be considering alternative pairs and stocks included to spread an even playing field.

Insight: Behind CB Rate Decisions

The newly installed US Fed Chairwoman of the Federal Reserve Janet Yellen, have stamped her marked on the market by mentioning the Fed's guidance on its decision of rate increases within 6 months. And moving forward within 2015 after delivering her statements on the FOMC meeting that prompted a strong rally for the US DOLLAR

A different stance was likewise stated by the Bank of Canada governor Stephen Poloz, not to rule out the possibility of a rate cute, have driven the Loonie lower after maintaining its higher price level as compared to where the USD was trading before the FOMC statement. While the previous weeks, the BOE have emphasized a rate increase that also supported the British Pound to its higher levels before the meeting after the same move was made when the Reserve Bank of New Zealand also raised rates.

Insight: Behind CB Rate Decisions

Post-FOMC Dampens USD Bulls UPDATE: 9.18

In summary, the FOMC stance on delaying taper schedule has obviously pressured the USD which prompted the European majors including the Aussie Dollar to rally. Outperforming the rest of the currency class, major bulls USD traders and investors sentiments have been dampened by this report.

The USD Index traded to as low as 80.05 basis point where the 79.85 is in sight that could meet USD short-cover and market capitulation for most speculative positions holding short-Cable positions for some time now in particular. Although, price levels on the USD and the rest of the European majors are within their technical over-bought area. And expect daily session correction adjustments. But the relative strength of these majors like Cable is likewise supported by positive fundamentals from the UK sector.

Cable have registered a daily high after the FOMC report @1.6162, with the Euro steady @1.3540 with spill over market price sentiment in the Aisan opening session. With most traders more reluctant to take positions at these price levels leaving uncertainty for retail speculators to take to the sidelines and simply watch how the week's trading sessions would end either on a higher or corrective mode.

Post-FOMC dampens USD Bulls UPDATE: 9.18

Game Changing Move Expected..

from Speculative Price action


The positive influence of Retail Sates couple with the recent precious metals decline have given the USD the lifeline every bull analyst have been waiting for. Although, price action for the past 3 consecutive days of US Dollar recovery have lost its steam and would soon retrieve back to its original directional trend heading lower.

Key price areas to check for the closing week with the US Dollar Index is whether it would stay above the 82.05 pivotal price to restore its bullish sentiment. Or would a retest and pullback below the 81.10 levels be done within the next 2 trading days. Watch these key prices on both sides of the range when European market open on thrusday going into the American trading sessions.

Game Changing Move...