EUR/USD Long-term target posted Nov. 11 at 1.0594 traded last Monday at 1.0592. The November 11 range for the day was 1.0182 to 1.0363. Add this trade to the gazillions of long-term target trades posted over the past 12 and 15 years.
Long-term targets posted Nov 11: 1.0592, 1.0798, and 1.0967. The big line break on Nov 11 was 1.0805. The new line is now 1.0830. EUR/USD averages are rising, however slowly, yet this is normal currency market movement.
The new long-term targets are located at 1.0653, 1.0834, and 1.0989. Most vital averages driving EUR/USD are 1.0830, 1.1109, 1.1386, 1.1643. EUR/USD trades deeply oversold from 1.1100’s. 1.1300’s and 1.1600s.
Above 1.0830, targets 1.0989. Above 1.1100’s targets are 1.1332. Nov 11 below targets 1.0375, 1.0417, and 1.0592. Last week, EUR/USD traded at 1.0442. New low targets 1.0309 and 1.0328 and below targets 1.0224 and 1.0138.
Targets at 0.9800s and 0.9700s are at the deepest extremes. EUR/USD strategy above 1.0309 and 1.0328 is long only.
The long-term model is written in stone, correct, and should hold for the next six months. Only a 500-ish pip move changes targets. EUR/USD ranges from 1.0328 and 1.0309 to 1.0830.
EUR/USD Vs. Commodities and Risk assets
- XAU/USD = EUR/USD
- XAG/USD = EUR/USD
- S&P 500 = EUR/USD
- Copper/USD = EUR/USD
- Natural Gas = EUR/USD
- Yields/USD = EUR/USD
- GBP/USD
GBP/USD, for the most part, trades within the confines of the Brexit vote drop from 1.3600s to 1.1900s.
Long-term targets are 1.1961, 1.2314, 1.2544, and 1.2721. GBP/USD big break line is at 1.2537, then 1.2894, 1.3325, and 1.3771.
GBP/”s driving averages are at 1.2894, 1.3325, and 1.3771. GBP/USD trades oversold from all averages.
The current range is 1.1950 and 1.1961 to 1.2314 and 1.2537. A break below 1.1950 targets 1.18935 and 1.1719.
GBP’s strategy is long only and the same as EUR/USD.
USD/JPY
USD/JPY trades deeply overbought from averages of 125.00, 119.00, 115.00, and 112.00. Long-term targets: 138.89, 137.15, 129.65, 125.58, 122.66. USD/JPY can trade 1000 pips easily, and the trading strategy must be viewed in 1000 pips.
USD/JPY’s big break above 138.89. to target 140.20 and 141.51. USD/JPY follows DXY lower on a slow crawl and a sell-high strategy.
DXY dropped 1000 pips from 114.00s to the current 104.00s. The 50 and 5-year averages at 96.00's and 95.00s now approach and break lower targets miles lower for DXY. Viewed from a standard currency cycle is 2500 pips.