#EURO #EURGBP Cross Relates to Market Strategy

With a new high marked @8935 for the #EURGBP it is fairly accurate to VALIDATE our market call dated 6.14.17. The recent correction of the #EURO @1.1380 have found new support as the #USD - #DXY pulls back below 96.00 for the 2nd round of market play for the week. As the steam from the good NFP figures have loss ground due to some profit taking and price adjustments thereafter.

#EURGBP Cross rate gains above the 0.8900 levels marked at their new highs for the week's trading as the decline in #CABLE / #GBPUSD trades below 1.2850 for now. The alternate market moves between these two majors is a clear indication that the ground for the Pound is quite shaky. And in spite of the round of talks and from Central banks to tighten monetary policies that would affect interest rates in the near future.

The trade strategy for the EURGBP cross has been correlated with the EURUSD now trading above the 1.1450 line of defense registered last MAY 2016. These market conditions will continue to do so until such time another round of catalyst would change market sentiments. 

#USD Remains Resilient With Supportive Factors

#EURGBP Cross Benefits from Price Action

Surrounding the USD rise are well supported by several factors. Not necessarily in their respective order starting of with the decline in precious metals as Gold prices currently moved lower trading at 1209.81, with Crude Oil moving back down from expected inventory levels and OPEC members and non-members uncertain on continuing production cut commitments is at 52.50.

A positive figure from the ADP report showed that private payroll grew by 298k in January, compared with the consensus of 184k. Meanwhile, in the UK, PM Theresa May's meeting with the House of Lords have failed to provide the lift for CABLE and have traded to its lowest levels at 1.2138 with a slight session relief recovery above 1.2170. Further weakness on CABLE and with the EURO slightly holding on at 1.0550 have provided some lift for the EURGBP Cross reaching the 0.8668 price recovery; after a 5 week cluster trade with a weekly session low at 0.8400 of Feb 19, 2017.

Thus, the technical side of the trade supported by two (2) identifiable indicators that overlays its directional trade signal. However, the prevailing fundamentals have been more influencial with the EURGBP Cross direction and its respective price behavior.   

NOTE: The USD -DXY and the Major Indices has set their floor price levels during the 1st quarter of 2017 respectively. The US Dollar Index (DXY) is at 100.00 basis points, while the DOW initially can be set at the moment with two major floor prices, 1st level at 18500 and 2nd level at 19750. These are the three levels that have been identified.

#USD / #EURGBP Cross Keeping a Lid on the #EURO

Pure Price Action Analysis has defined the market behavior of the three (3) correlated pairs that is keeping the 'LID' on the #EURO until now. As mentioned after failing to trade through 1.1380 on the way higher and declined back towards below the 1.1250 have kept the EURO on the defensive. As #CABLE responds to the renewed strength of the USD as the DXY - Index stays above the 95.50 for now while touching a session high @96.15 in late US session. GBPUSD trades below the 1.3180 to this writing.

EURO's negative pressure would exist for as long as the impact relative to the #EURGBP Cross rate would prevail as it failed the corresponding resistance @0.8725 that created a 'divergent trend' with the EURUSD that resulted to a serious pullback to its current levels @0.8510. Whereas it is also meeting cross trading activity due to uncertain investor's shifting towards alternative pairs such as the Japanese Yen related crosses.

Comparative Chart Analysis: DXY EURUSD EURGBP CABLE

Having these three (3) currency pairs at hand will be focused as a new TUG of WAR emerges between the #USD, #EURO & #EURGBP; while monitoring #CABLE prices. This would lead to a more accurate reading of the direction of the EURUSD. However, traders who does not have any existing positions on the single currency, can navigate new trades in the EURGBP Crosses (Evening Star Tech Pattern) as an alternative strategy. Again, application of a cross trade between the three pairs is more appropriate to have a fairly good net result as the USD gains more strength above its current levels. NOTE: Do not discount the session pullback in prices as end-of-the-month trading activities conclude for institutional trades.

This analysis is effective for now purely on a "Price Action' without the relative influence of the upcoming reports towards the week.

NOT JUST FOREX: Market Brief & Insight as of 4.25.16

There has been so many market calls for US stock markets to move lower between 10-15% since the 1st quarter of 2016. Indeed the Dow registered a low @15450.55 dated the 20th of Jan 2016; a retest @15503.00 that served as the higher low that served as a test of patience as well. But since then rallied to its present course above the 18000 levels. Signifying a gradual yet sustainable rally with some minor pullbacks can still provide market participants doubt & uncertainty even until now.

The general over view of the market in a bigger picture has been negative entering just the 1st quarter of the year that really surprised the market including institutional traders that dented their bottomline coming into earning season. There were just a few positive data mostly coming from the US, that drove stocks lower directly related with oil prices. 

With the surrounding developments of oil's recovery, stocks have gradually paced it, along with commodity currencies, including the precious metals market which also contributed to the current rise contrary to the bearish speculation & outlook of some known analyst.

Not Just Forex: Market Brief & Insight

USD Typical Price Recovery, then & now!

The three cluster of candle bars have indicated the first signal that a daily price recovery is in the making. This is also supported with an opening price gap last Monday's US session that followed with an initial registered low @93.62 basis point.  And currently above the 94.30 levels which would also be pressured with the recovery in Oil and precious metals.

Such formation have been easily identified which is typically described in technical chart patterns. The low also provided a divergent price trend when compared with the combined tech tool of the diagonal contrarian direction relative to the Stochastic / RSI.

With that said, the correlated effects would spill over with the EURO & the EURGBP Cross rates directly which is in fact at the stage of a corrective phase with the EURUSD @1.1306 & 0.7941 respectively. Thus the resiliency of the rest of currency pairs could be spared such as the Aussie which is still working at the higher band of its range.

Market Call: USD Key Driver for Major Indices Direction & Renew Higher Trend with Volume - Momentum signals would be the game changer!

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

INSIGHT: FX & Stock Indices Price Action

Marked Highs & Lows: The market's ability to set newer highs and lows is widely credited to the momentum and volatility of price action from a broad base combination of the US Dollar, the DOW JONES, SP500 & the JP NIKKEI 225 index and their respective correlated markets with OIL

The sequence of price movements on the USD; as defined with its trade weighted average DXY, which marked a new low @95.65 setting the market pace for the currency market to do the same. This already stated with the new low on the USDJPY @114.20. These initial moves were the first signal that a new cycle of alternating moves were in the making which we have anticipated in our most recent report. Let us define the series of price movement in their order and price sequence reaction.

INSIGHT: FX & Stock Indices Price Action

New Price Cycle Starts on CCY & STOCKS

USDJPY 

PRICE ALERT: 

• USDJPY @110.95 - 2nd NEW LOW European Trading Session Update as of Feb 11, 2016
• USDJPY @114.44 - 1st NEW LOW Asian Trading Session Update as of Feb 09, 2016

Based on our most recent expectation the market is geared in setting-up "New Highs & Lows" which have started as early as today trading in the US trading session. Admittedly, the market has gotten ahead as of today's price action highs & Lows. How short-lived a price recovery was that! 

Nevertheless, after the DXY @96.25 low; an initial contrary price move by the USDJPY that marked a new price low @115.17 - extension - (Higher Value) as of writing. This also reflected the flow of sentiments where a spill-over from the stock market's decline have also shown investors flight to safe-haven currency pairs. Related info on DXY Price Alignment

With similar bets shifting towards the precious metals on GOLD near @1200.00 New High Levels away from a renewed price decline on Oil. And other sectors from Technology, Financials other than Energy have been the main drivers of the decline: while the market awaits FED chair Janet Yellen's testimony for the week.

Its been quite a busy session again from the closing of the European session, as price action on the EURGBP cross has set its 2nd New High @0.7760 which may find some minor resistance while CABLE gathers momentum for the next leg lower as we have anticipated. However, these three currency pairs have also been the main focus as the market have been active since the opening bell. For now this is what we meant as the market has gotten ahead this time around.
       

BRIEF: Market Insight Before ECB

As the market prepares for ECB Mario Draghi's much awaited remarks in the European markets for the ECB rate decision. While in the Asian session heading towards the major session in Europe and the US have turned again into bear territory after starting off with a relief recovery.

New Lows not only in the DOW & SP500 and the other global indices; the currency market has indeed came through with CABLE marking three consecutive new lows with the latest @1.4125. Meanwhile, its correlated EURGBP Cross rates have also marked its new High @0.7755 before making a pullback @0.7650 reflecting some profit taking for the day. This has been an effective well worth the risk analysis which we have made to this date. But a cautious play should be observe as the ECB rate is on hand. However, its the remarks of Mario Draghi that may trigger a different tone moving forward.

BTW - These exceptional moves and market conditions are best approached going beyond charting systems and price action analysis. 'Secular Market Forces' have been present for some time now from our countless information sharing emphasizing due diligence on market behavior. Tools of technical trades are effective but not as effective during these kind of market movements. Take the extra caution in trading the market. Only the best for your trades!

EURGBP CROSS RATE: https://dwq4do82y8xi7.cloudfront.net/x/ESdFFXNW/

CCY Corner: Divergent Trend on EURO & CABLE 2

The aftermath on the stock market rebound is still seen as a relief price recovery of the market after several declines were seen. Which was obviously felt by investors in the first two weeks of trading for 2016. This has given some headway for the currency market to make its own moves as prices continue its trend movements today.

Therefore choosing the 'Right Currency Cross rate' was made based on the divergent trend of price and market behavior of the two pairs that led to combination them into one trade with a fairly larger exposure. However this trade is well  defined into its process and has a limited time frame based on the price comparison / directional difference including the market's behavior and price change.

EURGBP Cross Rate OVERLAY

CCY Corner: Divergent Trend on EURO & CABLE

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

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

CCY Corner: EURGBP Cross Rate Correlation with CABLE & DXY

BRIEF INSIGHT:
The importance of following a sequence of trade analysis even after a trade settlement does not stop as we have always emphasized, The series of mix reports resulting to price swings in both directions for the US Dollar, CABLE and the EURO have been anticipated.

 For several reasons other than the US GDP & FOMC minutes,  UK GDP, ISM figures that led to a relief recovery for the US Dollar at the closing week of May 1: which happens to be also the first trading day of the new month. An over-lapping trading case scenario more often neglected and disregarded for its value & significant importance by some analysts, traders and investors for that matter.

This is were real traders and market strategist differ while uniquely separated from one another. The likes of protecting the gains made from the European majors against any adverse price swings well ahead of the market. More to follow this week as we would be watching the movements of the correlated pairs with their corresponding cross rates specially the EURGBP, EURO, &  USD

"Sequence of trades & analysis do follow and does not stop after trade set-up
 nor when a settlement has been made." 
Being ahead simply means you'd be out of the market, while others are just getting in. 

EURGBP CROSS RATE

BRITISH POUND

GBPUSD_EURGBP DIVERGENT TREND

A Cipher3 Applied Analysis & a Combination of a Counter-trade Strategy 

By: Alexander @MegaTrade101

CCY Corner - AUD EURGBP Cross

After a series of European banks addressing monetary policy, Denmark and the Reserve
bank of Australia have joined the band wagon on slashing rates to its current
level @2.25%. This move is more for banks to meet a balancing act among the
rest of its peers worldwide. No one has really admitted a currency war but the
fact is that it does exist and makes its presence known particularly in the
financial markets.  

Even with market conditions such as this; having to pay banks for keeping European
deposits especially with interest rates at negative territory is not as
encouraging as it used to be for main street investors. The Aussie carry trades
has changed it tone while it is still beneficial to trade contrary to the Yen has
not been as lucrative like before. A substantial trade amount of volume would
be likened, except that the trading ranges have likewise been narrowing for
quite sometime now. 

CCY Corner - AUD

CCY Corner - EURGBP Contrary-Trend Strategy

The Asian financial markets opening prices for the Euro's decline reflected the Greece election victory of the leftist Syriza better known to be anti-austerity group. The Euro started off with a lower opening price @1.1145 with a low apparently reaching @1.1095 where short-covering price action are now seen. With a seesion price recovery at the early European session working @1.1250. A normal price swing seen as the initial objective has now been achieved.

This has been a similar price action with the EURGBP cross with an opening price @0.7425 While Cable held steady at the same price level in Asian session. This is to no surprise that price reactions after the lows would we find a reasonable corrective move especially coming from over extended levels on both the European majors.

CCY Corner - EURGBP Contrary-Trend Strategy

Event Highlights - Calendar of Important Events

Market Movers for the week ending January 30, 2015

Event Highlights

CCY Corner - EURGBP XRate & DXY

The Euro's decline continues as the ECB reports on QE have already been confirmed with an expected boost with a total amount of USD1.2T or an equivalent of 60B Euros monthly until September 2016. This has been the driving force of the markets where the highlights of market moving events have been dominated by central bank moves. A list of CBs monetary policies entering the 2015 is seen as a follow through were efforts of central bank decisions to control EU deflation or tame global inflation played well. 

Prices in the foreign currency market have been driven by these fundamentals more than a real free-flowing market. As we have mentioned that these are exceptional times with the US Dollar taking the lead currency pair in value among all of its global counter currency pairs. 

With that said, the choice of the EURGBP Xrate for the start of the year have seen a gradual decline because of the market's critical price levels and tensions created from the ECB QE program. And much to these Central bank moves; China's market talk of a similar move from the SNB would eventually curve a niche to stay competitive in value and keeping in check with global trade against declining foreign currency value. Somehow CCY value would have to find an equilibrium levels until such time when the USD would have to adjust from its current strong value.

CCY Corner - EURGBP XRate

Comparative Analysis: #DOW #SP500 #GOLD #DXY #EURGBP #FXCROSSRATE

Comparative Analysis On #DOW #SP500 #GOLD #DXY #EURGBP #FXCROSSRATE 

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Dow Jones Industrial Average 

Volatile as it can be!

As of January 12, 2015

ONLY THE BEST FOR YOUR TRADES 2015!

GREAT START FOR THE YEAR!