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FX Weekly: Gaps and Trading Opportunities

Published 11/27/2022, 08:25 AM
Updated 09/03/2023, 03:41 AM
EUR/USD
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GBP/USD
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USD/JPY
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USD/CHF
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USD/CAD
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EUR/JPY
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GBP/JPY
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GBP/CHF
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CHF/JPY
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CAD/CHF
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EUR/AUD
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EUR/CAD
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AUD/CAD
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AUD/JPY
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AUD/NZD
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CAD/JPY
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EUR/NZD
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GBP/AUD
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GBP/CAD
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GBP/NZD
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NZD/CAD
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NZD/JPY
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DXY
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DXY big breaks this week are located at 106.30, 106.65, 106.79, then 108.30, 108.46, 109.26, and 109.42. DXY lows target 105.18 and 105.09. DXY 106.79 becomes most vital as 107.00’s failed to register this week. DXY last week was 107.81 rose to 108.30.

The DXY information is not only accurate, but DXY levels serve to trade every weekly market price on the planet from stocks, commodities, interest rates, and any currency. Nothing more is required, and we may submit it as is.

Economic announcements are located inside the price. Don’t surmise what is the level of GDP or NFP when the actual number is located within DXY. GDP or NFP is possibly located from DXY 106.30 to 106.79 or maybe 105.18 to 106.30. Fed Funds 12 and 25-point daily movements may be found within the same DXY levels.

The obvious GDP route is to enter the 108 numbers for perfect accuracy and 300 numbers or 25 years for NFP averages, as NFP was first introduced in February 1939. Usually, 20 and 25 years serving as an accurate NFP forecast, including actual and off-sync. The statistical agencies in charge of factoring and releasing economic data forecast anywhere from 3 months to barely one and 2-year averages. NFP requires a minimum of 5 years of data or 60 months.

EUR/USD

As DXY opposite, EUR/USD levels are located from 1.0351, 1.0316, 1.0271, 1.0235. 1.0199 and 1.0056. EUR/USD trades overbought, and a short-only strategy for the week to target 1.0253. Last week’s target at 1.0215 traded to 1.0354 lows from 1.0446. This week is a continuation short from last week. EUR/USD traded 226 pips last week Vs. DXY 245. This week is expected to be 170 to 184.

GAP Opportunities

Last week Gap opens occurred in AUD/NZD long, AUD/CAD and NZD/CAD short. This week Gap opens include short GBP/CAD, EUR/CAD, AUD/CAD, NZD/CAD. Further opportunities include long CAD/JPY, CAD/CHF, USD/CHF.

Problem pair USD/CAD traded 179 pips last week Vs 375 for GBP/USD. USD/CAD, as the problem currency, lacks the ability to trade 1/2 GBP/USD and underperforms to EUR/USD and DXY.

GBP

This week’s stars are short overbought GBP/USD, GBP/CAD, GBP/AUD and cautious short to GBP/JPY while no thrills exist to GBP/NZD and GBP/CHF. EUR/NZD is the best currency over GBP/NZD. Overbought GBP/AUD will assist EUR/AUD lower. Watch EUR/AUD 1.5278.

JPY Cross Pairs

Overbought to GBP/JPY and NZD/JPY while oversold to CAD/JPY and CHF/JPY. EUR/JPY and AUD/JPY at fairly neutral will follow the crowd. Overbought GBP/JPY as a leader should assist JPY cross pairs lower on a short-only strategy for the week.

USD/JPY weekly levels: 137.81, 139.25, 139.97, 140.69. USD/JPY 140.69 should match DXY 108.30 and 108.46 and EUR/USD 1.0235. SPX 500 traded 101 points last week, or just shy of 1/2 DXY. The low target this week is located at 3918.

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