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

MegaTrade101 Defines - The Art of Trading

Numerous times we have been asked why -The Art of Trading?
So its about time that we clearly define Megatrade101.com - The Art of Trading.
Simply, it is the.....

•  Attitude - and the approach towards market analysis in dealing with any market such as the Foreign Currency market, Commodity Futures or Stock Markets.
• Rationality - in analyzing the risk/reward  factors of any investment instrument in a specific period of time and amount of exposure. Is it worth the risk?... has always been determined with a predefined strategy in any trade position before final execution.
• Timing - is one of the most critical levels where serious due diligence should always be made before properly executing any trade position in the market within the three (3) major markets of Asia, Europe & the US trading sessions. 

This has been the process and trading methodology that MegaTrade has timelessly been applying in every aspect of trading activity. Having to pay a high tuition fee in learning these volatile markets. We hope that by sharing our simple trading philosophy and trading experience would be useful for other investors and traders alike to define and would reach a certain comfort level & trading style that best suits them. Remember, there is no one size fits all, as there is no real "Holy Grail" or a sure fire strategy of winning in any speculative form of investment trading specially the foreign Currency market. Please refer to SUMMARY GUIDELINES...

ONLY THE BEST FOR YOUR TRADES!

  

US Dollar Index & EURJPY CROSS LIVE - 11.09

Technical Perspective: EURGBP Cross rate

The EURGBP cross have obviously taken a recovery from its established low price at 0.7950 last week. Although, technically oversold, this recovery would be limited up to its 50% FIB retracement price as indicated by the 0.8170 1st objective point of resistance while simultaneously can be a pivotal point where fresh bids can emerge. This is where such dangerous volatile price action can take place and short-covering

reactions for the last two trading weeks ahead may seem to be too tight for mid-term traders to properly adjust positions.

The overall technical downtrend equivalent to its consolidation period is not finished. So there maybe some delay towards its weekly moving averages to adjust to the price levels while prices continue to correct upwards. For some technical strategists daily doji and island price reversal candle bar have taken effect last week ( indicated with an ISL signal on our weekly price page indicator dated the 15th of May) was an indication that this would be taking place. Why? Its due to the synchronized price levels between the USDx, EURUSD, USDCHF and the EURGBP cross coming together which we term as a cross signal between 4 major currency pairs. When this happens a contrary market price direction would occur, Timing such activity can only mean that a trade setup can be taken with limited risk Thus taking a short to medium term trade to cross our USDCHF long position is safe to initiate. Extensions on filling in the gap closes to 0.8110

would be the 1st objective.

Technical perspective: EURJPY Cross - Part 2 Update

EURJPY UPDATE: MCH 21 '12

UPDATE: Although, the momentum for the EURJPY slowing pacing the GBPJPY this update of prices extending towards the current price of 111.23 extension high has just penetrated the trend line resistance. The USDJPY recovery above the 84.00 levels have supported the EURJPY as it continues to move towards the 885.00 trading range where most have anticipated where the USDJPY is heading to.

Meanwhile the EURJPY cross with its current pace is aiming for a 111.55 - 112.35 trading range for this week as long as the continued strength of the USDJPY continues its present rally. The pivot price and support still remains to be at the lower price levels of 108.10 -108.65 range way above its Daily Moving Average price of 109.25. Momentum remains steady to higher while the positive tone remains for the Stochastics with the relative strength still has some room to move higher before it reaches an overbought situation. The equi-distant rising channel has been defined in the daily chart and comparing with the weekly may prove to have some possible offers that would "trigger daily pullbacks" at the end of the trading week & month. This recovery from the low of 105.55 has found a sustainable trend so far.

Techncial Perspective: EURJPY Cross

Daily EURJPY cross as of March 19 '12

 The earlier price reaction of the EURJPY form the previous week was more influenced by the USDJPY continuing price higher reaching the 84.16 high. While the late reaction came form the USD pulling back to the 79.67 low. The correlation of the Euro & the Sterling Pound vs. the USD would be directly affected more than that of the cross rates.

However, the daily market reaction after the fall would have a relative mix sentiments as contrary movements are being set-up for a temporary correction for the EURJPY heading south in line with the USD gaining lost ground and would affect the Japanese Yen including the GBPJPY cross rates respectively. The price movement heading lower on a daily basis would be within the week's trading towards the end of the quarter before the next high would be attempted. The support price level of 108.10 would serve as the crucial price and a probable retest on a lower candle wick would be nearer to the 108.62 daily Moving average. A slower volume build-up can be gauge with the momentum and volatility index during the mid-week as we draw closer to the end of the month.

Current Market Conditions - Price evaluation

Let us start of with this saying...that history does repeat itself! In relation with the the current market condition, as we evaluated the price behavioral patterns and movements, we have concluded that the best correlation as far as currency pairs are concerned are the USDx, EURUSD, GBPUSD and the EURGBP respectively in this order.

On the technical view point, as mentioned in our previous market view report that the trading range for the USDx after touching a 78.09/10 2nd bottom would be a re-test of the 80.05 interim resistance after penetrating the 78.80 levels easily. For course this was triggered by the fundamentals of Fed Chairman Ben Bernanke testimony coupled with some good figures in consumer confidence plus some renewed volumes for the USD vs. the decline in the precious metals market. The guidelines for the USDx market movements are currently paused awaiting for the NFP numbers that would add to the confirmation of the trend direction for the week. As prices have moved in both directions from a low to the high and now at the low levels of 79.15 basis point for the USDx. Pls. continue ...article link: Market conditions 3.09

Market Analysis - SRO 2.28

Amidst the up coming reports as listed below, the volatility from the previous week have led investors, institutions and speculative traders amongst main-street investors alike winding down market actions.

EURO as of Feb 28, 2012

Despite of some good news from the housing sector did very little to further push the USD above its recent declines. The USDx measured at the 78.50 basis point level is still vulnerable for a continued decline especially coming from a low of 78.20 levels and the unexpected rally of the S&P last Friday.The crucial statements that would be watched would be the statements of Fed Chairman Ben Bernanke towards the end of the week.

Meanwhile,the Euro's resiliency to hold above the 1.3250 - 1.3360 range is symbolic contrary to the other reports between Greece sustain conditions and the G20's meeting held in Mexico in maintaining and likewise supporting a stability of the financial markets through the IMF. Although, traders who has also maintained their bias bearish opinion have indeed suffered from its rally specially after coming from a 1.2970 extension low and currently working at the 1.3430 corrective move. On the Technical side, the Euro and the GBPUSD is well in line with the USDx move which targeted its 1st objective reaching a low of 78.20 not too far off from our price call at 78.05/10 levels. For a complete report click on the link: http://megatrade101.com/megatrade101/market-view

Process of Booking a Forex Trade "LIVE" 02.24.12 by MegaTrade101

USDX continues its weakness!

With reference to our Feb. 01, 2012 market outlook and analysis of the USDx the objective for the downside would be in the range of 77.95-78.05/10 where the USD may find some level of support. Breaking the more important 78.80 is crucial. As mentioned that as long as the USDx for the weeks ending the 17th &  24th of February 2012; would not close above and beyond the levels of 79.50-80.10 basis point. Then the directional trend lower would have to continue. Please refer to our USDX Down market analysis dated the 1th of February. The effective technical tools applied in the above chart are the FIBONACCI RISING FAN & retracement, channel resistance / support, STOCH/ RSI COMBINATION & MOVING AVERAGES on a daily CANDLESTICK CHART. including a series of analysis and positions taken in the market from January 26 has led to the finality of the trades made.

FOREX: 10 KEYPOINTS

How to Analyze the Analysis

Analysis from market reports can sometimes be confusing for others. The credibility of such reports should well be categorized in their simplest form.

News reports of actual events can and will always be easily related to, since they are indeed actual current events. Being able to relate information compiled or read through while comparing them with actual working graphs that depicts the reason or reasons why prices reacts from these reports is another side of the equation.

In most cases, analyst or financial writers/ traders for that matter would then summarize their respective view points on how they perceive the markets and react accordingly towards it by way of positions taken or not in the market place. Equally more important are for investor/ traders who uses these information alongside their knowledge of interpretation and tools of the trade, to be able to gain from the market movements in exchange for the risk/ tolerance that they are willing to take while literally exposing their investment funds on trade at a given period of time.

However, trading the forex market considers a little more due diligence since the correlation with one another would have to weigh together with other fundamentals that affects the prices worldwide. The ever growing retail broker's coverage of the expanded major currency pairs viewed and summarized by more than a hand-full of currency analyst, strategist and quant analyst making their point across the wires especially coursed-through the Internet channels can equally be compounded.

Therefore, as a matter of guide we have listed below at least 10 key-points to better understand in simplest form; how not to over analyze the analysis whenever taking into consideration related articles on analysis either they be technical orientations in nature or fundamentally related reports. The ultimate decision would have to be totally independent and not be influenced with how an analysis is best presented intellectually or with sophistication. It still boils down to clear transparency in content substance. There are only two positions to choose from which is either to buy or sell.

Link: 10 KEY POINTS: (Not necessarily in order)