Fund Flow

Sunday, 10 March 2019

US Dollar Chart Analysis - Part 2

US Dollar recent strength is a real Bullish Chart formation or fake bullish chart formation as what President Trump had claimed a gentleman in the Federal Reserve Central Bank, loves a stronger dollar, who had engineered a rally in US dollar.

US dollar had broke out of symmetric triangle (bullish chart formation) but fund flow practisioner knew US dollar is executing a false breakout, awaiting for more downside pressure for the US dollar especially President Trump who loves a weaker US Dollar, keep emphasizing on the US dollar strength.

The crucial red support line (support turn resistance) and blue resistance line (resistance turn support) is a strategy used to entry and exit near resistance or support, a line drawn with simple mathematical formula, using the peak + trough / 2 equation, an useful indicator taught by Asian Investment Guru Mr. Hu Li Yang in one of his Youtube videos.

What is observed an imaginery line swing trade setup (downside pressure) is in the making, 

Alot of trader particularly employed only certain Fundamental Analysis (FA), Technical Analysis (TA) or both FATA but without considering the critical Fund Flow Analysis aspect, whose trade taken had been stop out by the market makers making them lose money most of the time. 

What is fundamental analysis? Fundamental Analysis is not financial ratios used to determine value in equities but in Forex terms, US Dollar itself is a fundamental analysis because US Dollar is the current world reserve currency where major central banks globally held most of their reserves in US Dollar. foreign exchange currency pair like USDSGD, EURUSD for instance are having inverse relationship with the US Dollar, Should US dollar strengthen SGD and Euro will weaken while US dollar weaken, SGD and Euro will strengthen. Also strength and weakness of the currency pair should take into considerations of both Federal Reserve and Monetary Authority of Singapore (central Bank) or European Central Bank (ECB) monetary policy decision that could influence the performance of foreign exchange currency pair. For example, Should ECB embark on a tightening monetary policy cycle, Euro would strengthen against the US dollar. Inter-market analysis is also consider an important fundamental analysis to determine the maecroeconomic environment.

What is Technical Analysis? Technical Analysis is about analyzing chart with price action setup either with a bullish or bearish chart formation or pattern to determine the price target. Chartist also analyse the sentiment given on a particular securities observing volume of the trading transaction whether should they take position in an euphoric or fearful market environment.

Fund Flow analysis is about measuring the capital inflow or outflows of a particular maecroeconomic environment.

Hence can we just apply Technical Analysis (TA) alone? answer is no, we need to combine FA, TA and FFA like what technical analysis expert Mr. Donovan Ang had said.
US Dollar Index - 8 March 2019 with Technical Analysis

US Dollar index - 8 March 2019 with Technical Analysis

US Dollar Index - 8.3.19 without Technical Analysis

US Dollar Index - 8.3.19 with Technical Analysis

US Dollar Index - 8.3.19 without Technical Analysis

US Dollar Index - 8.3.19 with Technical Analysis

Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.