FX weekly — DXY and 14 currency pair levels and targets
|DXY highs for the week is expected at 105.94 and 106.05. At 46 pips from the close, EUR/USD bottoms and long at 1.0608, 1.0696 and 1.0585 to target 1.0730. EUR/USD this week eliminates the question to DXY as EUR/USD by its own price trades vastly oversold against limited downside availability.
Overbought USD/JPY targets 147.17 on a break at 148.10. GBP/JPY big break for lower is located at 180.43 and 100 pips from 181.47 current price. USD/JPY lower for the week will assist to a GBP/JPY drop and trade closer to 180.43. The GBP/JPY break will allow all cross pairs to target big breaks such as EUR/JPY at 155.73 and CAD/JPY at 107.14.
For the week USD/JPY trades lower along with JPY cross pairs. EUR/JPY is blocked at upper 156.00's and CAD/JPY at 108.00's. GBP/JPY 180.43 will hold this week however next week presents the best shot to cross lower.
DXY same old weekly story to 100 pip ranges above and below current price. Next above is 106.01, 107.18, 108.36 then below at 105.00's, 104.00's and every 100 pips to 99.00's.
The EUR/USD and DXY relationship ensures a market slowdown to ranges and movements.
GBP/USD and AUD/USD sit in the same deeply oversold position as EUR/USD. GBP/USD must trade to minimum 1.2394 then on the way to 1.2400's and long term target at 1.2736.
AUD/USD beats NZD/USD as the best complement trade to GBP/USD. For the week, higher for AUD/USD and NZD/USD.
Economics
As Central Banks met, the next 6 week cycle begins with Inflation releases. The last 6 week cycle revealed Inflation for all nations ranged from 0.1 to 0.3. The vast majority of nations traded 0.1 to 0.2 but GBP and the UK brought the range to 0.3 by a 0.2 difference to Inflation rates.
The 6 week cycle is actually 2 weeks of economic releases and 4 weeks to central bank meetings.
The first 10 currencies in the weekly line up runs as best and easy trades and profits to least favored.
The list: EUR/USD, USD/JPY, AUD/USD, NZD/USD, EUR/CAD, CAD/JPY, EUR/NZD, EUR/JPY, EUR/AUD, USD/CAD.
The anchor currencies are first and required to create wider trade ranges upon broader movements. The anchor currencies are the same as the DXY V EUR/USD problem to compressed ranges and its the anchor currencies that must drag us out to trade correctly again.
GBP
GBP/USD, GBP/CAD, GBP/NZD, GBP/JPY, GBP/AUD.
GBP/USD and GBP/CAD hold as best trades for the week while GBP/AUD and EUR/AUD trade neutral and retain last positions.
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