Talking Points:Fading liquidity with only two trading days left to the year dramatically alters market conditions A sharp drop from the Euro Wednesday may have been nudged by an Italian debt auction, but it originated with liquidity The drop from the S&P 500 this past session was the biggest in two months, yet expectations should be realistic
The distortions from thin liquidity are growing more prominent. With only 48 hours left in this trading week, month, quarter and year; it will only grow more erratic. One of the most prominent movers over the past 24 hour session was the Euro. It seemed that the move was sourced from the Dollar or EUR/USD specifically; but the [...]
The US Dollar Index (DXY) is holding up fairly well after breaking out above the 2015 highs, with a couple of different pattern sequences potentially developing. The bearish scenario we looked at looks the least probable at this time, but if important support doesn’t hold then sellers could step in and send the dollar lower.
EURUSD is a mirror of the DXY for an obvious reason, it makes up roughly 58% of the index. We are watching a couple of key developments there to tell us whether a larger correction could take shape or a trend resumption is on the horizon. GBPUSD has less clarity in direction, but clean levels to watch. AUDUSDand NZDUSD rebounds are both at critical [...]