EUR/USD
EUR/USD from last week’s analysis had to break 1.1268 to continue the downtrend from its neutral position at 1.1300’s. EUR/USD broke l 1.1268 Wednesday and traded to 1.1223. Next lower points are located at 1.1226, 1.1189, 1.1180 and 1.1133.
EUR/USD’s target from the 5 year 1.1505 average is now located at 1.1041 and a rising target along with a rising average. EUR/USD’s problem to the downtrend target is not only the 5 year average rise, but longer dated averages are deeply oversold and ascending.
While the 5 year average targets 1.1041, longer dated averages at 1.1500’s, 1.1700’s and 1.2000’s target middle to upper 1.1400’s. EUR then adopts a long only strategy as a lower EUR/USD is in contention against its own averages.
USD/JPY
Last week’s trade USD/JPY offered as long to target at 113.97 and 114.11 then short to target 114.40. Highs achieved 114.23 and lows to 113.17 for a round trip trade at +159 pips. USD/JPY longs target this week 114.25 and 114.32 then short to target 113.41. A break at 112.85 target 112.29
USD/JPY weekly averages are rising yet the ascent is extraordinarily slow as noted by long targets offered over each of the past 6 weeks. Despite rising weekly averages, USD/JPY is astronomically overbought from 108.00’s and 109.00’s and targets 109.00’s on a longer term basis.
Trade Rankings
Trade rankings for the week were distinguished by easy trades and profit pips as follows: EUR/USD, EUR/JPY, AUD/JPY, AUD/USD, EUR/AUD, USD/CAD, CAD/JPY, CAD/CHF, NZD/JPY, NZD/USD, AUD/CHF, NZD/CHF, EUR/NZD.
JPY Cross Pairs
JPY cross pairs earns high rankings due to not only oversold, but all sit just above vital long term averages. EUR/JPY, for example, from 127.00’s is protected at 126.11 and 125.00’s, AUD/JPY 80.12 and CAD/JPY at 86.00’s.
NZD
USD/NZD and cross pairs move higher on the weekly ranking due to oversold NZD/USD and NZD cross pairs. NZD/USD’s big break to resume the downtrend from neutral had to break 0.6675 and NZD achieved 0.6701 lows. NZD/USD driving prices are located at 0.6843 and 0.6902. Above targets 0.7000’s to 0.7200’s.
GBP
GBP trade rankings were as follows: GBP/USD, GBP/JPY, GBP/CHF, GBP/NZD, GBP/AUD, GBP/CAD.
GBP/USD
Last week’s GBP/USD levels: 5 year average and rising line were located at 1.3109 then 1.3361, 1.3448 and 1.3485. At 1.3361. Current weekly vital levels were located at 1.3111 and 1.3156 vs 1.3357, 1.3445 and 1.3464 .GBP/USD trades 201 pips from 1.3357 to 1.3156 and down from 252 pips last week.
GBP/USD lower averages are rising vs a drop to higher averages. A showdown is on the way.
GBP/JPY correlates to GBP/USD this week at 85%, last week at 81% and 2 weeks ago at 60%. GBP/JPY is solidly in the GBP/USD universe. Overall GBP/USD and GBP/JPY are oversold and no changes to GBP/JPY levels from last week at bottom 148.10 then 150.37, 150.67, 151.03, 151.25 and 151.92.
USD/CAD
USD/CAD begins the week severely overbought while USD/CHF must break 0.9213 to travel lower and oversold USD/JPY 112.85.
DXY
DXY remains stuck between 95.25 to 97.16 then 97.62, 98.14, 98.47 and 98.62.
Overall currency market price ranges are severely compressed and further compressing.