EXY
Interesting TimesDXY is heavy in the Euro. Euro stock market peaked end of 1999. This caused huge rise in DXY starting in 1999. Huge rise in DXY keeps WTI & GOLD down like it always does in the central bank era. Europe begins to recover in 2002 which causes DXY to fall. WTI & GOLD rises rapidly as DXY crashes. WTI rises much quicker than GOLD. WTI becomes unsustainable and collapses world markets. Monetary policy causes volatility in all currencies worldwide while GOLD skyrockets and WTI rebounds while DXY jumps around its lows. Euro takes a dive in 2011 which brings DXY back up until 2014. Once DXY is strong enough, US switches policy to tightening as the DXY regains its footing at the expense of Europe. WTI & GOLD collapse with the rising DXY due to tightening. Euro slides as result and then Brexit and European Sovereign issues. DXY gets slight gains through all that. Fed stops tightening in 2017 to give Europe a chance to recover and the DXY drops. 2018 Fed tightens again, DXY rises, WTI & GOLD come back down while US & European Markets are volatile in sync. I think this might explain why price discovery is so challenging these days. What should we expect the rest of 2019 now that we have bubbles, QT, negative rates, and commodity prices relatively stable? Do the Euro shorts win as the DXY jumps or do the Euro longs win and DXY falls? How does this unfold?
Euro Index Approaching Resistance, Prepare For A Reversal
Euro index is approaching its resistance at 7.025 (100% Fibonacci extension, 61.8% Fibonacci retracement, horizontal swing high resistance) where it could potentially drop to its support at 6.9958 (76.4% Fibonacci retracement, horizontal swing low support).
Stochastic (89, 5, 3) is approaching its resistance at 91% where a corresponding bounce could occur.
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EXY Index Long to 113
I am looking at a Long Position to 113 TVC:EXY
Based on the Harmonic Pattern Drawn, I look for the Retracement of the final leg (D) to go 50% on Fibonacci which lies around 113 range
This is not a recommendation to take this trade
This trade was posted for educational purposes only
EURUSD (LONG)Technical:
- Last candle stick Feb 8th was bullish and short shadows means buyers has upper hand. also the candle started with a small gap it shows the power of the buyers that had overcame sellers.
- near to the prevailing trend line the price started to turn and maybe trying to make a news trend line means it is very possible to get to the long side.
Fundamentals:
- EXY increased about 0.9% but DXY increased 0.01% it means in EURUSD euro has the upper hand.
- Many US indexes falled
- Some Euro indexes falled/ some increased
?
EURO is getting more power.
be SURE : BUY, but don't forget risk managements. Try to Enter the market in a good time (not soon-not late ).