Wanna ride cable to the hell or fly to the sky?!!!
Reading up all the last day fed reports expectations of future cuts in 2019 aren't much and not so dovish dot plot/statement from Fed Chair Powell is holding the cable from rising further today. Fed had a dovish cut but talking about the future outlook it sounded not so dovish (no further major rate cut may arise and depending on economic data changes and how chaotic it gets fed may play conservatively if need to ease mp further) and now the only reason we can expect cable to rise strongly again is if the BOE surprises with positive rhetoric today, then the bottom of that rising channel may hold to present traders with a short-term buying opportunity. Yep, you got it I'm talking about the bullish bias here!
If you’re a bear on the pair, then the not so dovish future outlook of Fed statement scenarios mentioned above had already drawn in some relief rallying for the Greenback, and in this scenario if the market is able to break below the rising channel lower trendline, that’s likely a strong signal for bearish momentum and bear players can start jump in. And any dovish rhetoric or surprise rate cut scenario from the BOE later will more likely turn a break into a swing move lower that potentially returns Cable back to its longer-term downtrend.
Cheers! Have a party with cable tonight :D
If you’re a bear on the pair, then the not so dovish future outlook of Fed statement scenarios mentioned above had already drawn in some relief rallying for the Greenback, and in this scenario if the market is able to break below the rising channel lower trendline, that’s likely a strong signal for bearish momentum and bear players can start jump in. And any dovish rhetoric or surprise rate cut scenario from the BOE later will more likely turn a break into a swing move lower that potentially returns Cable back to its longer-term downtrend.
Cheers! Have a party with cable tonight :D
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BOE leaves bank rate unchanged at 0.75%. No hawkish but no dovish ended up accommodative!
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No progress in either direction yet from the daily PVT (blue line) where the price is floating around. Priced did a pullback near S1 during the rate news release but BOE ended up not being dovish so, buyer's tried their luck in bull side jumping from the S1. Actually, if it was a buy the bottom of that rising channel would have been the more best place to jump in the trade but it wasn't possible as the price didn't make up that low. Sentimentally talking price above the pvt (blue line) will let us release the ball is still in hand of the bull for cable and it will be best if the price doesn't drop below it and act as resistance (role reversal) which will not be a good indication for buyers. Price breaking above the R1 with strong bullish momentum will indicate a positive outlook for bull traders and R3 or the upper trendline of the rising channel is possible case which may happen
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On greenback side, jobless, manufacturing, and US housing reports were all printing pretty well outlook pressuring the bull of cable from rising it upward.
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Dot plot sees no more cuts this year, but 7 dots do & that likely includes Powell, Clarissa & William & mostly voters ..so we still see another cut by year end
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Well...well R1 brokes indicating strong bullish move upward now and above pvt (blue line) should be our signal to having ball totally in buyers hand! Let's see how this session closes.
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Congratulation for those who have chosen to fly to the sky bias! R3 / the upper trendline of the rising channel smashed well by price! happen
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The comments from European Commissioner Juncker that "we can have a deal" on Brexit, has pushed the price of the cable.
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Too much bullish pressure price trying to break through R2 which if happens then will eventually hit 1.26007 TP. If price hit the TP then R3 may possible where the price will test and maybe that level should hold strongly cable from rising further and can have some potential retracement lower
