FX next week: Inflation, maintenance periods, trades
|DXY Inflation 0.1, CHF Inflation = No change, EUR Inflation no change. EUR GDP = 0.1, DXY GDP 0.7. DXY Inflation is now oversold and trades higher in the next 6 week cycle. Expect higher and lower for Inflation and GDP at 0.1 and 0.2.
Inflation at 0.1 on the day experienced EUR/USD moves at 195 pips or 0.01 and a 1% move. From 10% Inflation, EUR/USD traded 1%.
Inflation is an interest rate and once released, the interest rate to trade for the day is known. Inflation lacks any significant meaning except as an interest rate. The causes to Inflation is tops on the meaningless scale as Inflation only trades 0.1 and 0.2.
Inflation only dropped 0.1 and 0.2 for the past 32 months while above 2%. Inflation target at 2% in 2025 will only offer 0.1 and 0.2. For GDP and Inflation, all we've seen is 0.1 and 0.2 and a rare off balance forercast.
If all have the feeling true and correct Analysis died long ago, this is a certainty. This is the age of 90% traders use charts. This is where it all began decades ago.
The world of trading is at the beginning stages. How can analysis possibly come from the beginning or to ascribe successful trading consistently.
Yet 80% of Retail traders continue to lose and no changes over decades. This is exactly what supposed to happen. Traders are led to the slaughter.
The previous 6 week cycle ends today with DXY Imports and Exports and the Economic story will remain the same across all central banks except the BOJ and SNB.
6 Week New Cycle Vs Maintenance Periods
The 6 week news cycle is the same as the 35 day Bank Maintenance period. The 7 day Maintenance Period is actually 14 calendar days and begins on Thursday and ends on the 2nd Wednesday.
The 7 day Maintenance period describes the 2 week cycle and falls in line with most vital Inflation and GDP releases for all central banks at the beginning of the cycle. This is where best trades are found and best movements due to bank money lining into high and low cash money channels.
Next week
Currency markets and a vast majority of currency pairs trade mid range as current prices are fairly settled. Best trades next week are JPY cross pairs as GBP/JPY, CAD/JPY and EUR/JPY.
CHF/JPY includes to JPY cross pairs as CHF/JPY also trades massive overbought.
EUR/USD 1.0963 target traded 1.0887. Lows 6 weeks ago achieved 1.0400's. The traders job was entry anywhere, walk away and all have +400 pips.
GBP/USD target at 1.2661 achieved highs at 1.2505 and lows 6 weeks ago at 1.2000's. All have 500 pips for doing nothing.
EUR/USD and GBP/USD targets remain open and will complete.
EUR/USD trades 1.0864 to 1.0719 and currently overbought. We're short for next week for any price at 1.0800's. Overall, longs remain as EUR/USD higher has a long way to travel. Above 1.0864 trades 1.0864 to 1.1054.
GBP/USD trades deeply oversold at 1.2300's and trades a range from 1.2343 to 1.2551.
AUD/USD trades oversold in a wide range from 0.6447 to 0.6753.
Lower for EUR/USD, GBP/USD and AUD/USD must break 1.0719, 1.2343 and 0.6447.
EUR/AUD traded 139 pips this week and targets remain 1.6400's and 1.6200's. EUR/AUD will break 1.6627 then 1.6400's target completes.
GBP/AUD traded 300 pips this week to floow its counterparts GBP/NZD and EUR/NZD.
GBP/AUD last week target, 1.9036, lows traded 1.9043. Next week, GBP/AUD trades 1.9146 to 1.9238.
NZD/USD trades 0.5958 to 0.6030. NZD/USD trades to follow the market.
USD/CHF trades severely oversold while CAD/CHF adds to the oversold reading to CHF cross pairs.
Overbought to GBP/CAD and EUR/CAD.
USD/JPY 151.66 to 149.92 range.
EUR/NZD and GBP/NZD contain a long way to drop. Oversold USD for next week translates to short highs.
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