As written last week: DXY vital breaks are located at 103.29, 103.55, and 103.67. DXY broke 103.67 and traded to 104.01 in a dull 104 pip trade week. DXY was oversold from the low 100.00’s and extremely close to the 99.00 break.
DXY supports are building below 104.00’s at 103.46, 103.39, and 102.23. Further down, 102.36 must break for the DXY downtrend to resume much quicker. Trade in the 102.00 to 104.00 range will offer another fairly slow trade week.
DXY 104.00’s and higher will struggle next week to move to achieve further gains. Big short points next are 104.32 and 104.48, and a massive line at 104.80. Higher overall, DXY will be a struggler and move extremely slow.
SPX traded 87 points to 4176.73 highs from 4089.12 lows on a weekly target at 4222.69. Currently 47 points remain to target and 2 trade days. D XY’s range from 102.00 to 104.00 offers about 100 ish point range next week. The high side informs target at 4190.00’s.
Gold traded 25 points this week or 1/4 to DXY from 1899.12 to 1874.11. Next week targets 1902. and further gains ahead in upcoming weeks to high 1900.00’s.
WTI highs achieved 78.82 from 72.25 lows or 6 weekly points on a target at 81.32. WTI cracked above the massive 77.00 to 83.00 range. WTI hold supports at 75.00’s and 76.00s and targets easily 79.00s next week. Overall, WTI 6 weekly points is a fairly normal trade week.
EUR/USD must trade above 1.0618 to target 1.0915 by breaks at 1.0679, 1.0780, and 1.0847. EUR topside averages are dropping against rising averages at the low end to inform a larger EUR move lies ahead in upcoming weeks.
AUD/USD higher must break 0.7006 to target 0.7052 and 0.7107.and trades an overall 118 pip range from 0.6887 to 0.7005. AUD becomes overbought above 0.6997.
EUR/AUD last week, from reported tops at 1.5700’s and 1.5800, traded to 1.5658 and dropped 284 pips to 1.5374. EUR/AUD trades oversold from a big break at 1.5420 and targets next week 1.5563. EUR/AUD must break 1.5420 to target again 1.5300’s.
GBP/AUD at the big break at 1.7564, traded to the brink at 1.7550, then dropped 300 pips to 1.7200’s. Next week, GBP/AUD ranges from low 1.7400’s and long to 1.7500s as 1.7538 is required to trade to 1.7600’s.
USD/JPY trades 124.88 to 133.38 and 133.48. We’re short next week, around 131.68, to target the break at 129.98.
GBP/USD last week, as written, must break 1.2114 and 1.2144. GBP/USD traded to 1.2158 from 1.1960 lows. Next week target high 1.2200s.
GBP/JPY trades 156.20 to 160.96 and 200 pips for the week from 157.00’s to 159.00’s. GBP/JPY breaks 156.00’s, then JPY cross pairs trade 500 pips lower, and USD/JPY follows. EUR/JPY 141.50 then back to 142.00’s.
USD/CAD trades 1.3200’s to 1.3400s for the past 2 weeks. USD/CAD not only contains a range problem, but CAD fails to trade alongside DXY in a meaningful manner.
Currency markets trade next week in short ranges as DXY must decide its destiny by breaking lower at 103.00’s. This will force better trade environments and wider ranges.