Currency market: FX next week

Brian Twomey Brian's Investment

EUR/USD topside yesterday was set against targets at 1.0256 and 1.0259. Both extraordinary moves for the day and both targets achieved for big profits yet EUR/USD breaks vital 1.0285 and trades another 82 pips to 1.0367. Note the location of 1.0285 as dead center of the hourly candle.

The break of 1.0285 then placed EUR/USD from 1.0285 to 1.0350. What allowed EUR/USD to travel higher was the ECB at 10:00 then EUR/USD was good until 1.0304. The BOE at 11 am stopped EUR/USD to begin the long slide lower to 1.0320. The Fed at 12:30 then settled EUR/USD at 1.0296 from 1.0367 highs or71 pips.

EUR/USD yesterday traded for the day overall 167 pips and about 67 more than normal. On the surface appears as just another EUR/USD trade day but 1.0285 set EUR/USD off 82 of the 167 pips or 1/2 of its total 167 pip range.

The 2 most vital points to traded markets are overall ranges and range points such as 1.0285. How much was 1.0285 respected was seen in the weekly trade target at 1.0283. Friends and subscribers profits were 130 ish pips but the pips were easy and guaranteed. And the trade duration was 4 days.

Range Vs Price shares the most unique relationships and most vital to understand market trading.

What were the trade options. Not only was EUR/USD overbought at 1.0285 for the day but 1.0285 location was dangerous. The only option was short and short anywhere.

EUR/USD moves yesterday were unusual, extraordinary and in mathematical weirdo ville. Correct was EUR/USD to reverse at 1.0250's. Who or possibly which central bank took EUR/USD higher from 1.0285 is unknown. We're not privy to such information anymore as was the norm in the old days from the top 4 banks. Previously, the top 4 banks release Flow Reports to determine who to major banks and central banks were big buyers and sellers.

EUR/USD Big break for higher is now 1.0420 and the range becomes 1.0357 to 1.0294. Below 1.0294 targets 1.0231 easily. EUR/USD Friday should close in the vicinity of 1.0168. The lower for EUR/USD is the better for the long trade next week.

GBP/JPY shorts yesterday at 163.82 traded to 163.64 then began the long drop to 161.00's. GBP/JPY vital at 162.01 allowed GBP/JPY to trade to 161.00's. Big break for higher is now 162.05.

EUR/JPY is on the verge to trade lower at 136.95. EUR/JPY is a horrible currency at the moment heading into week 3. EUR/JPY trades neutral to neutral without significant progress. EUR/JPY is more suited as a day trade. EUR/JPY broke vital 136.93 and traded 30 pips lower to 136.60. This should serve as a warning to EUR/JPY.

DXY achieved 106.45 and USD/CAD 1.2990's. As written yesterday, USD/CAD 1.2958 Vs DXY 106.45. The DXY V USD/CAD differential spread from 20 ish pips to 40's.

Higher for USD/CAD must break 1.2835. DXY now enters its next range from 103.00's to 105.00's. Vital above is located at 105.54, 105.76 and 105.80 Vs 104.30 below.

The breaks below for DXY was significant as much as 1.0285 was for EUR/USD.

AUD/USD broke above 0.7001 and lower for AUD/USD must crack 0.7013. Current range 0.7055 to 0.7096 then begins overbought and shorts.

Most important to overall currency markets is NZD/USD break above 0.6362 and today 0.6368. NZD/USD at 0.6417 is fairly neutral which means NZD has every ability to travel to 0.6500's or break below 0.6368. We're short next week in the vicinity of 0.6490's or long upon a break of 0.6368.

GBP/AUD yesterday was written longs at 1.7395. Correct was short at 1.7395. Deeply oversold GBP/AUD should be a big winner for longs next week. Same story for EUR/AUD.

USD/JPY for next week 131.61.

GBP/USD. Looking for a close around 1.2104 for longs next week. A close much higher then GBP/USD is on the last place of the trade rank list.

EUR/NZD as written yesterday long for a quick 50 pips at 1.6178. EUR/NZD traded 1.6150 to 1.6274. EUR/NZD current trades deeply oversold and informs NZD/USD could easily break 0.6368.

Gold traded 20 points yesterday and expected to trade 10 points today. SPX traded 31 points yesterday and within the 25 point framework. Max today is right at 47 pips.

Author

Brian Twomey

Brian's Investment

Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.

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