Weekly Technical Focus on the USD
Weekly Technical Focus on the USD
The US federal election
along with various stimulus bills will continue to influence markets
this coming week. As the US senate works on stimulus in the $trillions
and US presidents encounter a miracle cure for Covid19, the Equities
markets continue to soak up the excess liquidity and continue with
extreme valuations too earnings per share.There are 30 million
unemployed in the US with a $2T+ stimulus spending program on the way,
and consistent with the other economies Australia is to receive
continuing Federal government stimulus. This has brought about a calming
effect on the US and Australian markets with a significant reversal
pattern in the XJO.To get more news about WikiFX, you can visit wikifx.com official website.
Volatility
will be the underlying driver of prices in the coming weeks as markets
enter this October “Bear killer” period. The key concern remains, Tech
leaders are driving the Index with underlying market breadth remaining
on average below 70 %, (not all boats are rising with the tide).During
this time of year many commentators seem to go into overdrive with all
sorts of predictions for the coming 3 months.Many refer back to the 1987
October crash as evidence to be wary at this time of year.Consider
this, the market has only made 2 significant corrections of this
magnitude in the 114 years, 1929 and 1987. It is our business to take
advantage of statistical facts to tip the advantage in our favour. The
US dollar, as measured by the US dollar index (DXY), finished another
week firmly on the back-foot. Tracking broad risk sentiment, the DXY
fell 0.8 percent with only minor bouts of strength derived from softness
in currency counterparts.Fed officials offered few additional clues
Wednesday, consequently sparking little USD movement. In other news,
Thursday‘s weekly unemployment claims totalled 840k, a touch higher than
the 820k consensus estimate.
Against the US dollar:· The euro has
climbed 1 percent· The pound advanced 0.9 percent· The Australian dollar
ended higher 1.1 percent· Spot gold rallied higher by 1.7
percentEntrenched within a large-scale pullback since March 2008 from
70.70 (primary trend is considered south – check the monthly timeframe),
and the daily timeframe’s immediate trend rotating lower since March
2020 suggests bears may be looking to secure lower levels going
forward.A bearish setting formed under 92.26 daily support this week is
likely to throw light on daily support at 91.00.What to Look out for
this weekMonday· BoE- Gov Bailey SpeaksTuesday· UK Jobs Figures· US
Inflation Data· CPI (m/m)Wednesday· US Inflation Data (PPI m/m)· RBA Gov
Lowe SpeaksThursday· Australia Jobs Figures· Philly Fed Manufacturing
Index· US weekly unemployment claimsFriday· US retail Sales Figures m/m·
US Prelim UoM Consumer Sentiment
Authors BiographyBola Akinya is a
Forex trader and consultant with more than 20 years of immense
experience in Forex Indices, Commodities and Currencies.Prior to
becoming a professional Trader, she held positions as a Head of
Sales/Business Developer with Credit Registry and Operations Manager
with Peak Merchant Bank both in Nigeria before moving to UK where she
worked with great companies like AIG and The Wealth Training Company as
Course Instructor and Speaker for over 15 years on the FX and Stock
Markets before she started her own company – The Learn and Earn Forex
Training Company over 5 years ago.Over the years, she learned 121 from
Top traders all over the UK which enabled her to develop her own unique
strategies and trading systems that has made her a successful trader and
Trainer.She is married with 2 boys and 2 cats.With the combined use of
Fundamental and Technical analysis, she trades on the short term –
medium term, as well as Economic News releases, combining both to give
the consistency that is required for successful trades.
评论
发表评论