Currency Market: FX weekly commentary

Brian Twomey Brian's Investment

Commentary last week reported currency pairs EUR/USD 1.2061, AUD/USD 0.7657 and USD/CAD 1.2783 were located in crucial positions to determine much lower on a break or hold and travel higher. EUR/USD broke and traded 169 pips lower to 1.1892.

Currency markets this week remain in pivotal positions however added to the week is NZD/USD at 0.7139,

GBP/CAD 1.7484,

AUD/USD 0.7652,

USD/CAD 1.2771

CHF/JPY 116.65,

AUD/NZD 1.0765,

AUD/CAD 0.9768 and

NZD/CAD 0.9113.

Ranges are wide this week and markets are easily capable to handle the big moves expected. Watch in particular EUR/NZD and EUR/AUD then GBP/USD.

AUD/USD and NZD/USD topside pairs NZD/CAD and AUD/CAD both broke lower and signifies its a matter of time before AUD/USD and NZD/USD break and trade much lower. Bottom pairs AUD/CHF and NZD/CHF are both overbought and assists to further downside to AUD/USD and NZD/USD.

GBP/AUD last week's vital points were located from 1.8130 to 1.7885. This week 1.8130 to 1.7905. GBP/AUD broke 1.7885 and traded 80 pips lower. GBP/AUD correlates to GBP/USD at - 64% and caution is warranted to trade GBP/AUD.

GBP/NZD last week reported ranges from 1.9318 to 1.9176. This week 1.9318 to 1.9188. GBP/NZD last week first broke 1.9176 to trade 82 pips to 1.9094. GBP/NZD then traded above 1.9176 to achieve 1.9415 highs and closed at 1.9290 vs last week's close at 1.9244. GBP/NZD correlation to GBP/USD run -43% and caution to this week's trade.

EUR/USD and all EUR pairs are deeply oversold and matches to richter scale overbought to USD/JPY and USD/CHF. Moves lower to USD/JPY and USD/CHF are corrective unless 105.70 and 0.9064 breaks lower. EUR/USD higher is corrective unless 1.2020 and 1.2034 trades higher. Weeks ago was reported EUR/USD targets at 1.1800's and 1.1700's.

JPY cross pairs represent the best market moves for most pip gains beginning with GBP/JPY as all JPY cross pairs are overbought and current prices are miles to high.

Last post was shown GBP/JPY true moving averages and the 20 day is located at 148.38 then the 50 day at 145.26. The 20 day average matches the 10 year average at 148.36 and off by 2 pips. A break at 148.00's then GBP/JPY larger range becomes 148.38 to 142.30.

Watch EUR/CAD higher this week, EUR/GBP oversold and GBP/USD overbought.

Next 2 and 10 year yields, levels, ranges and targets. Inflation as a 3 month interest rate and its relationship to the 2 year yield.

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.

EUR/USD hits two-day highs near 1.1820

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