USD at 3 Month Highs, While the 10 Year Bond Yields Push 3%

forexbrokr (67)in #forex • 7 years ago

Hey guys,

Back at the markets on this beautiful Tuesday afternoon in Sydney, with a cruisy intraday focus blog.

If you haven’t already taken a look at yesterday’s two weekly market preview blogs, then give them a read for the higher time frame context around all of the charts that I speak about from here through to the weekend:

I write my Steemit blogs as a never ending, unfolding narrative that moves and changes with the markets.

Please hit the follow button and join me on the journey. I’m always keen to hear real comments that build on or oppose my trading ideas.

After all, this is what trading is all about!

Market Overview

The two big market themes overnight, seem to be the US Dollar at 3 month highs, and the US 10 year bond yields pushing 3%.

It was just last week that I was asking where the USD buyers are? Well that question sure got answered quick smart, didn’t it!

Take a look at the US Dollar Index chart below compared to the one I linked to above:

USDX Daily

With price pushing resistance at the top of what looks awfully close to an ascending triangle, a bullish pattern if ever there was one, we could be in for a nice USD run here. This would of course send some massive ramifications through the forex majors, some of which I’ll talk about below.

With US bond yields continuing to rise, we can attribute this movement to positive inflation expectations from the Fed and of course the oil price rally that we’ve been seeing.

The fact that the US economy seems to be tracking much better than their European and Asian counterparts, mean that policy divergence will finally come back into play and market moves off the back of this could be decent.

As someone that isn’t THAT old, this prospect really pricks my interest because for too long it feels like I’ve just been around follow the leader policy between continents.

Let’s see what comes, shall we.

Forex Markets

With the US Dollar rip we’ve talked about above in mind, the majors have obviously seen some action.

I’ve been frothing over my Cable short trade and with the potential policy divergence coming into play, the Pound has been absolutely hammered:

GBP/USD Hourly

Did anyone add into their short position here? When these opportunities present themselves you’ve gotta be willing to add in.

The key to long term success in trading is adding into your winners. You can’t afford to get cold feet and take your profit early. Just do it!

Moving on and the other idea we were discussing in yesterday’s forex weekly preview blog, was the possibility of buying the Aussie in this support zone:

AUD/USD Daily

Well yeah-naa, that certainly didn’t happen, did it!

This is a prime example of why you never blindly buy a zone though. You’re fighting momentum. Instead, I always preach waiting for the zone to have held and then buying intraday pullbacks into short term precious resistance.

The zone obviously never even looked like holding and momentum was always with the sellers:

AUD/USD Hourly

You can see that interesting little retest that you could have shorted, but my mind was trying to play from the buy side so it’s all just hindsight from me there.

Good to analyse and get written down for future trade ideas none the less!

Commodities Markets

Now I can’t really post a decent, tradable 10 year bond chart because I’m in the leveraged forex trading world and not futures, but I will end with one market that is driving yields up.

Yep, Oil:

CL Daily

It’s absolutely burning me that Oil is ripping without me, but it is what it is.

The setup from a retest of the zone we had been watching was there, and clean as fuck:

CL Hourly

I hope you’re making money somewhere from these blogs, guys. The amount of opportunity out there right now is phenomenal!

✌🏻.

@forexbrokr | Steemit Blog

Market Analyst and Forex Broker.

Twitter: @forexbrokr
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