Brian Twomey
Brian's Investment
As reported Friday, FX begins and will end the week as the exact same as last week. NZD/USD and AUD/USD starts the week deeply oversold. NZD and AUD cross pairs trade in compliance to oversold NZD/USD and AUD/USD. Weekly NZD/USD targets 0.5744 on a break of 0.5699.
AUD/USD and NZD/USD long assistance is derived from deeply overbought EUR/NZD, GBP/NZD and EUR/AUD. Best profit trades for the week for 200 pips each are EUR/NZD, GBP/NZD and EUR/AUD. GBP/AUD will follow but caution to 1.7288 as further shorts are dependent on a break lower. All contain a short only strategy for the week.
EUR/USD and GBP/USD begins the week in neutrality and the same neutral story as last week. Neutral references the price location. Price location is determined by averages. Averages are dependent to averages moving higher or lower in relation to the traded price.
An expansion or contraction to averages determines the range of prices. An expansion to averages means the price remains in the same location under wider ranges while a contraction refers to trades to break ranges yet trade in a higher or lower location.
EUR/USD began last week at 147 pip range. The actual range traded 274 pips from 0.9999 to 0.9725 or 2 X 147. EUR/USD long and short profits last week 319 pips. Overall profit achieved higher than the actual range which means every traded pip was profit but also, EUR/USD required a range break to achieve targets.
EUR/USD 2 weeks ago and 319 pip range to 148 pip profit as ranges expanded to miss extra profit pips above and slight miss to entry below.
Overall ranges decide questions to neutral, oversold and overbought.
DXY Vs EURUSD
DXY Monday targets 113.12 and 113.53 for the week. Targets higher for future weeks is derived from counting 70 pips from 113.53 as 114.23, 114.93, and 115.63.
EUR/USD as DXY perfect opposite targets weekly 0.9657. Lower targets for future weeks is derived by counting every 69 pips from 0.9657 as 0.9588, 0.9520 and 0.9451.
DXY at the 112.75 weekly open trades 1600 pips above the 50 year average at 96.00 while EUR/USD trades 1600 pips below the 5 year average at 1.1400's.
DXY economic news will eventually trade against rate rises and DXY will drop. As perfect opposite EUR/USD and Europe economic news will strengthen and EUR/USD will rise. Currently, both Europe and the United States run trade deficits at -42 billion and -62 billion.
EUR/USD weekly trade
EUR/USD range this week trades 142 pips from 0.9758 to 0.9616.
Long 0.9687 and 0.9678 to target 0.9829. Short 0.9829 to target 0.9758. The long trade proposes 151 pips from 0.9678.
Short 0.9829 to target 0.9758 or 71 downside pips for a total 222 pips on a possible 284 pip range.
EUR cross pairs
EUR/CHF holds support to EUR/USD and EUR/CHF at 0.9602 while 1.3350 decides EUR/CAD.
USD/JPY and JPY Cross Pairs
USD/JPY trades overbought this week and ranges from 145 to 147.00's. JPY Cross Pairs trade oversold and NZD/JPY leads the way higher. GBP/JPY breaks 161.64 then higher goes JPY cross pairs. Least favored is CAD/JPY.
Trade rankings
EUR/USD, AUD/USD, EUR/AUD, NZD/USD, NZD/JPY, USD/CAD, EUR/NZD, AUD/CHF, NZD/CHF, CAD/CHF, USD/JPY, AUD/JPY, EUR/JPY, CAD/JPY, EUR/CAD.
Best trades this week: EUR/USD, AUD/USD, EUR/AUD, NZD/USD, NZD/JPY, USD/CAD, EUR/NZD, AUD/CHF, NZD/CHF, CAD/CHF.
GBP trade rankings
GBP/NZD, GBP/USD, GBP/AUD, GBP/JPY, GBP/CHF, GBP/CAD.
USD/CAD and USD/CHF trade severely overbought while USD/JPY trades within the confines of DXY.
Trading currencies and other financial instruments carries a degree of loss and possible loss of entire investments. Please managed your own risks, stop loss, and margins requirements.
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GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
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Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
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Bank of England stays on hold, but a dovish front is building
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