#TSOT - CABLE Market CALL 5.12.16 VALIDATED

GBPUSD as of 5.18.16

CABLE's price action as of this session is @1.4610 from the previous low @1.4350 call made last 5.12.16. Whereas prices for an upward trajectory was in the making with prices moving higher which has been led with the right momentum and volumes from where it started.

The extensions being aimed would be higher unless certain market pullback would hinder this rally. But for now some traders may have been fixated on the fundamentals on the BREXIT which is way contrary to today's move. At times, the market do move from a technical perspective against all odds. Pls. note that all trades are correlated with one another as majors and crosses are significantly being traded as a combination that best suits market conditions that delivers the next best probable results in exchange with the risk involved.

#TSOT - #GBPEUR Cross Rate - 2nd Alternate Trade

Applying CABLE as basis from 5.11.16 analysis; the GBPEUR cross rates was the preference among the two of the crosses best suited with the current market condition. The inverse cross has more of a market potential than traditional way of trading EURGBP.

Thus giving a distinct advantage of a relative stronger GBP v. EUR moving above median resistance 1.2600 even figure from focal turning point  With prices currently @1.2955 as of this writing.
Momentum and investors shift focus on CABLE's strength contrary to BREXIT which may take time. Market is driven by secular force bias to an upward direction supported by technical setup for now. A technical overlay using GBPUSD would reflect that the current direction for the Pound above the 1.4400-1.4500 shows some encouraging signs that justifies the current strength of the GBUSD major.

TOP STRATEGIES ON TRADE - #CABLE #GBPUSD Insight

Cable's prevailing bearish channel dominates the overall trend direction. However, interim price recovery would be in the making as the expanded time cycle would be followed.

The overlay perspective provides a bearish outlook which is fundamentally motivated while contrary price volatility in the interim reflects a tug of war between bull and bear players battle for positioning. There are at least five technical references applied in this approach.

This is just one of the collective 'Top Strategies On Trade©' that would be part of an exclusive premium service by MegaTrade101 soon!

by MegaTrade101.com

CCY Corner: Validating #USDJPY #CABLE Market & Price Call

USDJPY AS OF 4.11.16

The noticeable market behavior on the first week of the new month of April were well noted as new highs and lows were established thus providing the first signal what the new trading month would look like. To 'weather the storm of Price Volatility', alternating price movements from a consolidation which at times seem to show that uncertainty in market direction still prevails until such time a price break occurs unexpectedly.

And this typical behavior did occur with the USDJPY posting a new low where the Yen gained strength in a rapid fashion that registered @107.68 compared with its initial price low @110.65 at the end of the first week of ending April 01, 2016. Since the USDJPY @110.65 is also in line with the 94.30 registered low of the DXY, this aligned price movement was considered to be the first signal that would bring a probable follow through at the beginning of the new trading month of April.

LINK: CCY Corner: Validating #USDJPY #CABLE Market & Price Call

CCY Corner: DXY CABLE EURGBP Correlation

The upward US GDP revision provided the lift for the USD closing higher and above @98.00 bp levels. The recent surge was seen as half-way through the previous decline from 100.21 high to the 95.23 low and recovered to its present price level @98.08. And the benchmark low of 95.05 – 95.23 low range is now considered to be the primary support for the USD-DXY.(cloud-chart) Note: Corrections made

CCY Corner: DXY CABLE EURGBP Correlation

Investors Reacts to USD Decline

 Correction Validated 
DXY As of 2.04.16

Navigating Through Market Volatility:  The USD (DXY) is setting a new low @96.63 basis point, and the direct effect were reflected  with the EURUSD as it broke above its daily price consolidation levels @1.0880 and is currently @1.1180 as of writing. This can be attributed to the FED comments, which some traders see a more speculative reaction which can be considered overdone due to a rapid price decline.

Meanwhile, CABLE is barely keeping pace with the EURO with an exception that it registered a soft high @1.4665  as it's price move is limited due to mix fundamentals on the BREXIT floating in the market. And the same mild reaction is reflected with the EURGBP cross which has not made any serious attempt @0.7755 high which serves as the near term price resistance. The only time it would do so is whenever a probable corrective move for CABLE occurs as market volatility shifts with volume and investors flows in /out of stocks. CABLE attempts its range @1.4750 - 1.4830 which would be supported with enough momentum and volumes unless new fundamentals develops.

Correction in the making 
DXY As of 12.16.15

This is the 1st signal of the chart pattern of US Dollar as of 12.16.15 which is now being validated with two consecutive days of price declines. Although, the signals were there the overall picture remains intact but as we always say there will always be a major correction within a major trend.

Considering the decline is more fundamentally motivated the high from 2015 serves as the new high, while the current low @96.63 is being set as the fresh new low. The market insight here is the "Alternating Currency" moves which reverted back to the US Dollar along side the price recovery of OIL and GOLD.

This strategy applies when market shifts are in-front just waiting to be recognize. This USD decline is well respected where the financial USD (DXH16) & EURO (E6H16) Futures March 2016 contracts were properly utilized during the daily price consolidation period. Taking a cue from market volatility and other markets accessible for trading. Navigating SPOT / FUTURES Markets can best be managed knowing the CORRELATION of trading instruments accessible to tactical investors with self-directed accounts.  

Corrections on the date & Label were made on the charts. Thank you!

Best Reference Video: Forex Trading SPOT vs. FUTURES 

CCY Corner: On EURO CABLE & Cross Rates

With the disappointing data in UK, we've seen CABLE making another new low (3rd of a series) which built up the momentum & declined to its price objective @1.4350 levels before pulling back up on the close of the US session @1.4445. For now, the 1.4350 has been marked as a good initial support level for GBPUSD.

An expected relief price recovery is expected while Asia session today have seen CABLE trading @1.4490. The decline effectively flowed to the correlated EURGBP Cross where it made a brief session high @0.7554 that likewise made a similar pullback to its current price @0.7480 to this writing.

Click here for a complete analysis.

Market Insight: DXY GBP EUR Cross Rates - JPY & JPN225

The start of Asian session for stocks didn't fair out well as the JPN225 decline to its low @18430 as of this writing. Indirectly due to investors staying away from risky assets and relative to the Middle-East tensions between Saudi Arabia and Iran. The contagion in Asia is wide spread as the weak economic data from China led a similar drop in the HSI. 

The market situation have initially lifted the USD trade weighted index at the Asian session, in contrast with the USDJPY which gained strength @119.65. For a complete analysis & insight, click on the link below.
Market Insight: DXY GBP EUR Cross Rates - JPY & JPN225 

The Business of 'Making the Right Trading Decisions' for 2016 and Beyond!
"A similar market situation can be made or created within the new trading year and  an overlaying new contract month which at most times can define or establish a new "high or low" simply based on the weeks and months traded.".
by Alexander dated January 01, 2016

Trade Summary On Cross Rates 2

Net Percentage Trading can only be as effective when choosing the right combination of correlated currency pairs that are timely executed  in the market. While treating a loss as a cushion against unexpected adverse price fluctuations.

MegaTrade101.com Video Support Trade Summary On Cross Rates

USDJPY,  AUDJPY, GBPJPY, SGDJPY, CABLE
Focus on the Japanese Yen related cross rates with an arbitrary hedging strategy on Cable against adverse price fluctuation

CCY Corner: The 3 Amigos In FX - CABLE / USD / EURO - Technical & Price Action Analysis

So far it has been an amazing run for Cable from the 1.5170 to its closing price @1.5520 for the week ending September 18 2015. And from our price call @1.5580/90 levels, Cable registered a high @1.5658 and retreated back lower at its current price of 1.5520; due to some profit taking and position adjustments due to the end of the week's trading.

 BULLISH GARTLEY FORMATION

The earlier chart pattern that provided the Gartley Bull formation from the low not only provided the 1st valid signal as it was supported with a "Parallel Price Divergence" alongside X of June 02, 2015. While finding the HI/LO X cross at the middle of the price consolidation was even more difficult, however we were fortunate enough to find the focal point.  Other tech chartist may have called a probable double bottom but were to cautious to call it as prices on Cable were going down while the USD was moving higher. The series of market views that we have made reflects our trade with over a 400 pip recovery was made with the help of the FED's decision.

On the other side of the coin, the lack of follow through interest measured through the financial futures "Volumes & Open Interest" on CABLE was not enough to sustain above the 1.5600 which is now considered to be a short-lived extension in comparison with the USD Index move back from a 94.05 low and closing @95.15 basis point. MegaTrade101's market call on the DXY chart on the opposite side of the trade formation (Bearish Gartley formation) which came through with flying colors as best described with our recent market analysis and video support. Please check out the link! This is how the DXY looks post FED decision.

DXY POST FED DECISION

Meanwhile, the EURO has stalled @1.1280 levels and have finally made its run with a little push from the FED that marked a high @1.1460 nearest to our price call @1.1500 handle. The bigger picture for the single currency had created a "Disjoint / Trend Angle" during the course of its run. Capitalizing on the previous chart pattern analysis the registered high @1.1712 was significant. But not as significant when it changed into a bear engulfing bar at the closing of the week. A bearish spike now has been reflected and shall be a dominat factor for technicians as the fundamental would weigh in. the near term.

EURO IN A DISJOINT / TREND ANGLE

This case analysis summarizes the week's trade volatility as we made a call for the USD to move higher towards the last trading quarter for the year 2015.

UPDATED VERSION: The 3 AMIGOS In FX 

Not Just Forex: Price Action & Market Behavior Based on Correlation

Opening Market Insight GBPUSD

The issue on the UK getting out as an EU member have resulted into a reverse market psychology leading to a price recovery for CABLE from the low @1.5170 and currently trading at 1.5400 on the high. A good reference point which can be technically treated  as a support price where a probable rebound can take place. Refer to May 2015 as shown in the chart figure on CABLE.

This was a 360 degree turn compared to its decline from 2.0180 from the announcement that John Majors walked out from the ERM that led to a rapid decline in the FX market. And as for David Cameron stand on the possibility of  UK leaving the EU; this may go beyond immigration and other financial benefits that would somehow affect UK policy. The difference is that this issue came to a point where CABLE prices were at the low end of the market. Although, the corrective phase of the USD began when it registered a 92.62 low last August which came from the rapid decline of the DOW in contagion with the China market.

As of this writing,  GBPUSD strength and a mild price recovery for the EURUSD was reflected in the early European session when the USD declined @95.72 and trading towards the post holiday US trading session.

GBPUSD As of September 08, 2015

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 ll: Preparing for Risk Event: EURO USD CABLE

Based on the current reports so far; which is given so far...what is the best case scenario for the market's reaction. Due diligence is a must for those who would be opt to take a trade/s within the next three-to-four trading days.

Preparing for such an important risk event for traders who prefer to trade the Euro, let alone a combination of trades that would be suitable is what we all need to come up with. During our analysis meeting in preparation taking a stand to absorb market price swings can only be accomplished with comparing price action before any immediate reaction not only on spot prices but relatively with futures volume and open interest and how options are being played out.

This is where the "Principles of Trading a Contagion, Contango and Backwardation Correlated Markets" should be carefully understood. A clear example of MegaTrade101 - CIPHER3 analysis; along with the recent COT report already provided how Euro shorts and US Dollar positions have unwind; where a divergent trend has occurred from previous formations. The 2nd quarter position adjustments and roll-overs would prevail post Greece which would show it true colors by then. Watch for our price calls once Asia starts trading for the week.

The primary trend still prevails in a range bound trading pattern for the Dow Jones with a few exceptions for the USD, EURO and CABLE. These are the pairs to consider when taking on the market at this point. So far the USD top heavy configuration on a tech angle would weigh on any price recovery from persistent bull players that have been encourage from positive USD sentiment reports. Thus, a synchronized price action from the USD and Dow would provide a glimpse prior to the real deal in the making. Take a cue from our previous market approach on 'Price Action Analysis' using a simple yet powerful correlation on the market as defined in Forex Trading Methodology 2 as a due diligence point of reference & analysis during the QE from the FED.

Risk On Benefits USD

DXY as June 23, 2015 Asia Trading Session

The beneficiary on risk returns is on the USD; as US stocks emerges well both sides of the continent including the JP Nikkei 225 having a full run on the market's rally. This has been our focus in Asia ever since walking through this trend April 07 and in May 29, 2015  respectively.

The uncertainty and volatility that comes with the Greece negotiations have provided the market a roller coaster ride on price swings not only for stocks including the currency market. The DXY is currently nearing the 95.05/10 mark, a critical price if and when it stays above this level with an increase in volume transactions.

Which also led the correction lower for the Euro @1.1220 and Pound @1.5725 at the time of writing. That's why the pattern for trading has become more rapid with shorter term profit-taking within a three to four days positioning which includes Asian trading sessions on a Sunday start in the US towards a Thursday Asian session which is a Wednesday in the US market.  Timing the trades within this period for short term trades; however, we prefer to have a combination for medium to long term as part of the strategy and portfolio management. 

Cable as of June 23, 2015 

Risk On Benefits US Dollar

Alternating Trade Strategies 2a

CABLE spot rates are now trading above the 1.5900 levels. GBPUSD continues to strengthen heading towards the European session into the US sessions a the back of a declining US Dollar  currently @93.73 basis point. The upbeat hourly earnings reported on Wednesday followed by a dovish FOMC statement have been the main catalyst for the market's behavior where traders have now tried to take advantage of. 

The follow-through price decline on the USD have already been anticipated that would trigger a continuation for an upturn for the European currency majors. With this move, it validates our market call dated June 10 as described below:

       Alternating Trade Strategies 2a

Alternating Trade Strategies 2

The continuing USD decline with the DXY went through the 1st line below the 95.05/10 basis point support and currently working @94.38 low that have pushed the EURUSD @1.1385 and CABLE @1.5470 respective levels as of this writing. And halted the correction on the EURGBP Cross rate which is in the interim trend higher @0.7338 with prices above 0.7450 or better would provide a positive tone.

Developing 'alternating trade strategies' after establishing price pattern trends higher and its opposite counter-trend positioning can be an advantage especially for those who maybe quick on the draw in recognizing such patterns of price behavior. Price swings on both directions of the market within a three day period meets these conditions only with every trade execution properly timed. For Superior Trade positioning define - Tolerable price ranges from each HI/LO on these three (3) choices of currency pairs including the cross rate have established the pattern with a probable break for both European majors on the high side of the market when an increase in momentum and volumes would re-emerge. 

The post run of the USDJPY @125.50 levels as we stated have been completed as the continued decline on the USD in the European session have just started. As a word of caution, such early run in any market price swing would have a relative pullback in every trading session be fore the closing of the week especially when a break away price level would occur in the next two consecutive days. This over-view would not have a corresponding price chart since what should be monitored well is the price and market behavior of each correlated currency pair.

CCY Corner: Third (3rd) Degree Price Action Analysis

On Fundamentally-Driven Price Reaction

Currency Behavior has been noted to react with a mix bag of market sentiments as the Euro has more to gain from Greece and ECB stance that the QE decision was the right move as the CPI figures on inflation shows. A fundamentally driven market as such have fueled the EURUSD to its best levels.

With CABLE trailing behind at the moment, which serves to be the best case scenario where the equivalent Cross trade on the EURGBP have significantly been steady to the upside. These three (3) major CCy pairs are so far held its stance after the second higher low have been established that now provides a solid base to set the benchmark.

Third (3rd) Degree Price Action Analysis

Following the Sequence of Trades ll

CABLE & EURGBP Cross Reaction on UK Elections

CABLE as of May 08, 2015

A fundamentally driven market for CABLE has again regained its lead with its' currency peers, as an isolated case since it has been fueled by the vote of confidence from the exit polls in the UK general elections where the conservative party would hold its power well against the labour party, which have lost some seats in the minority. 

This led to its party leader Ed Miliband’s resignation after the labour party’s defeat in the general elections. Having walked into this trading scenario where Sterling Pound has reached another registered high @1.5520 clearly signifies the positive sentiments among voters and investors alike. With that said, the continuing sentiments would provide some pressure for the USD to move against its Cable counter-part at the moment. This is in spite of the better jobs data on the NFP that should have lifted the USD by now; yet it has been in a struggle to lift the prices to this writing. Watching market behavior by the market’s price action is relevant towards the next probable direction along side with the positive effects of the recent job figures influenced the Stock market back to its nearby highs @18190.85 compared to its previous high registered @18288.63 levels. 

For a full market insight Click here

Vote of Confidence for Conservatives Sends CABLE Higher

GBPUSD AS OF 05-08-2015

A fundamentally driven market for CABLE has again regained its lead with its' currency peers, as an isolated case since it has been fueled by the vote of confidence from the exit polls in the UK general elections where the conservative party would hold its power well against the labour party, which have lost some seats in the minority.

Having walked into this trading scenario where Sterling Pound has reached another registered high @1.5520 clearly signifies the positive sentiments among voters and investors alike. With that said, the continuing sentiments would provide some pressure for the USD to move against its Cable counter-part at the moment. Trend for CABLE is well on Track! Great Job Voters!

This move gained back what was previously lost from the 1.5497 down to 1.5088 and is now @1.5490 to this writing. A trade whipsaw where a volatile market exist between bulls and bears struggling to take dominance of position after the report on the exit polls were made public.