FX weekly — DXY and 14 currency pair levels and targets

Brian Twomey Brian's Investment

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.

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.