US FED's New Policy Shift With Some Dollar StrengthUS FED's New Policy Shift & Medium-term Dollar Strength
Wednesday's meeting by the FED has proved true that the FED is making a new monetary policy shift to normalize sooner than later, to reducing the size of the balance sheet ; and, this action that will send yields higher. This has brought strength into the USD. Thus, USD with strength being signaled, I a positive the USD in the medium-term for another quarter or two.
This video summarizes a few trades that are being taken and that have been taken due to the highly anticipated event of a FED move, which happen sooner than expected.
Normalization
EURUSD: Failed HighTechnical Commentary:
(1) Failed High
(2) VPA confirmation with weakness
(3) H&S Pattern
(4) Support tested and slightly breached
(5) Middle of bar resistance
Fundamental Commentary:
USD strength may come in with the FED beginning to normalize, reducing the size of the balance sheet, actions that will send yields higher and bring strength into the USD (and possibly a positive trend).
normalization/range clamp for cbci testExample chart testing artificial range clamping for the Constance Brown Composite Index (CBCI), which was deliberately designed to not be range bound to address some of the limitations and shortcomings of the RSI formula.
Here, an artificial value clamp/range bound 0-100 is reintroduced in the name of science, to see what would happen to key crossovers on a momentum-enabled indicator with no defined "floor" or "ceiling".
In short, I'm a huge fan of the CBCI - this isn't the first, and most certainly won't be the last time I explore modifications to the composite index and RSI.