The Fed and ECB chiefs have kept their promise not to touch on the monetary policy issues in Jackson Hole, but Janet Yellen has suddenly succeeded more in that. The dollar lost ground on Friday after the release of text version of Yellen speech which was generally useless for investors. The absence of any clues was a signal for the reduction of dollar positions...
The German economy has revealed signs of slowdown, despite the widespread economic pickup in the euro area and the concomitant strengthening of the euro. A number of data released on Friday pointed to a slowdown in exports and imports in the second quarter. Investment optimism also declined, probably due to the strengthening of the euro, overshadowing the...
We have a bullish Gartley setting up on the EURGBP with an entry that aligns with previous structure.
There is nothing bullish about the Pound, and if Mario Draghi fails to specifically address the exchange rate/detailed monetary policy again tonight then we should see further upside to this pair.
All the best,
Good evening traders,
There is a bearish Bat pattern forming on the EURJPY up at the 1.30100 level that we will be looking to enter only if the moon (price) and the stars (Mario Draghi, Jackson Hole) align.
We're hoping for a return of more volatile markets, and Jackson Hole could well be the catalyst.
Have a plan and trade it.
All the best,
We can enter a 0.5% risk long in GBPUSD to get started and then add in the coming days, and tighten the stop as well.
The short term trend has shifted to the upside, and now it's in sync with the daily chart, which shows a potential low is in place, specially confirmed if we don't hit 1.2799 in the next 3 days.
Let's see how this evolves.
1. Given the firming of USD STIR/ Fed funds following Yellens JH remarks and the markets hawkish reaction i still think there is another % or so of topside to be priced into USD topside.
- Fed funds implying 36% probability of a Sept hike - the highest implied prob in 3 months - hence given cables 50pip appreciation i feel theres another 100pips here to be...
Fed Lockhart Speech Highlights:
Lockhart: Tepid Business Investment Plans Raise Questions About Growth
Lockhart: Uncertainty A Real Factor For Economy Right Now
Lockhart: Fed Rate Policy Will Be 'Cautious And Gradual'
Lockhart: 'No Gun To Our Head' To Raise Rates Quickly
Lockhart: Two Rate Rises Remain Possible, One Likely This Year
Fed's Lockhart: There's...
Far negative net volume level, followed by corrective movement, does it make sense or not?
It seems appropriate to close positions or hedge with options time.
When the market does not teach his game, it is more likely that we are the ball.
Yesterday's candle was actually bullish. Long-legged candles signal reversals, even if the intraday selloff may have suggested otherwise. The key message: breakout levels ~10490 were tested (violated), but held. Index is off to a fresh swing higher, which could target 10860 (late December high) and 10981 (cycle fibo level).
With that in mind, yesterday's mini...