The dollar is climbing back towards a 14-year high after Janet Yellen flagged strength in the U.S. jobs market, while fallout from attacks in Germany, Turkey and Switzerland are putting pressure on the euro, pushing the currency back below $1.04.
Many economists have predicted parity with the greenback for years, arguing that the dollar would appreciate as the Fed embarked upon a path of monetary-policy normalization, but those forecasts didn’t look likely to pan out until recently.
In Asia, Japan +0.5%. Hong Kong -0.5%. China -0.5%. India -0.3%.
In Europe, at midday, London +0.1%. Paris +0.4%. Frankfurt +0.1%.
Futures at 6:20, Dow +0.1%. S&P +0.2%. Nasdaq +0.1%. Crude +0.6% to $53.40. Gold -0.7% to $1135.10.
Ten-year Treasury Yield +2 bps to 2.56%
(Source: Seeking Alpha)
As expected, prior session was relatively quiet with price trading “inside” the past five sessions. This “coiling” consolidation has worked off the overbought condition, setting up for an upside continuation rally to further potential new highs. As Christmas is fast approaching, trading volumes are expected to decline, as “thin-to-win” will have a greater affect on price.
Today is Cycle Day 2 (CD2)…Expectation today is for upside follow-through with potential upside targets 2273 handle, followed by 2278 – 2280 zone. Cycle Range High: 2282.97
Range Projections and Key Levels
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: March 2017 (H) Contract
*****The levels outlined below are more general framework within a larger range…They are to be used are reference prices from which to consider trade opportunities, not hard trade levels.
Scenario 1: IF price clears and converts 2266 handle, THEN initial target is 2269.50, followed by test of 2272 – 2275.25 STATX Zone.
Scenario 2: IF price violates and converts 2258 handle to lower resistance, THEN downside is open to 2254, followed by 2250 – 2248 lower over/under zone.
Trade Strategy: Our tactical trade strategy will simply remain unaltered…We’ll be flexible to trade both long and short side from Decision Pivot Levels. Continue to focus on Bull/Bear Stackers and Premium/Discounts. As always, remaining in alignment with dominant intra-day force increases probabilities of producing winning trades.
Stay Focused…Non-Biased…Disciplined ALWAYS USE STOPS!
“Knowing is not enough, We must APPLY. Willing is not enough, We must DO.” –Bruce Lee
*****This trade strategy report is disseminated for “education only” and should not be viewed in any way as a recommendation to buy or sell futures products.”
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
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