#USD Lifts #EURO #EURGBP Cross & Commodity Currency

Expect Wider Market Volatility Across 3rd Quarter 2017

The turning point & weakness in the USD-DXY back to 96.32 due to the delayed healthcare vote have given support on the ECB Mario Draghi inspired EURO moving towards the 1.1380 1st line of defense levels.

As we have seen an up/down price swing relative to the #EURUSD hi/lo range between 1.0500-1.1500 level. Wherein the choices we 've made back then is still valid with the #EURGBP remaining quite resilient well within its own range of 0.8400 - 0.9000 while currently trading @0.8853 to this writing. Click on Chart below for bigger view 

EURGBP Cross Rate

Price Update: An Obvious Market Squeeze of the EURUSD upon US Opening with traders over-reacting towards ECB Mario Draghi

The focus on Equities have long overshadowed the currency market with a few exceptions while awaiting for the resumption of a USD weakness provided a good support for the European majors and the commodity related currency. With the AUDUSD making a price recovery after trading well within its range at 0.7100 - 0.7750 levels; now has a higher probability of pushing though higher having a better foundation of its base and price consolidation.

With that said, the end of the week's trading closes the 2nd quarter trading for the year. Thus the prices marked would define the next opening quarter trading that would still involve a wider price range on these currency pairs moving forward into their respective band levels. In short, there would be a greater volatility of price swings that we are expecting in the opening price levels not only for the currency market but also with US Equities.    

Markets Paying Close Attention

Participants from traders, analyst and investors alike are closely focused on the new inaugurated US President as what his first week moving forward would he really be taking action. This have given the market some breathing room yet the 1st re-attempt to fuel another rally has been quite soft to the dismay of investors. The clamor for #DOW 20k have diminished despite of the come back of Oil and the decline of the #USD. That is why the ability to 'Hedge' what has been gained should be well protected or simply cashing it in for starters. Maximizing full market potential is another alternative trading decision & strategy when called upon. Using Futures market as a market preference. 

The continued weakness of the USD from the 103.56 high to its current levels near the 100 figure have given European majors and Asian currencies a breather for a price recovery which was more than welcomed particularly for CABLE, EURO & the AUSSIE Dollar. Meanwhile the USDJPY have been trading in both directions with a narrowing range from 115 -112.00 plus or minus

The first month of the year's trading is what we call a 'feeling your way' into the market as extreme 'Divergence' between Asia and US markets while the room for price re-alignment is still in the making from the start of January 2017. What it means, would be a clear range trading activity with some attempts of a continued weakness of the USD while secular forces would remain passive. Although, when volumes & momentum do pick up we'll be able to see some price action least expected. For as long as the USD remains and confined within its range we'll be more on a consolidation before any real action occurs. 

How Capitalizing on the 'Challenge' of Currency (FX) Trading can be useful for a new trader

Even In the recent 5 years, trading the Currency Market has evolved so much that the building blocks of technical analysis have often been over-shadowed by more fundamentally driven market price action and by weighing investors / sentiment & behavioral characteristics of the market.

Market orientation in particular has been focused on trading the currency market on the merits of technical trading platforms that had its fair share of improved trading mechanism in place over the past couple of decades alone. However it may seem, these technical based analysis derived from the tools of the trade have contributed much to how new traders have learned the mechanics of trading the foreign exchange market.

Capitalizing on the Challenge of Currency Trading