Last week’s focus was highlighted to the massive supports to EUR/USD, GBP/USD, NZD/USD and AUD/USD. As a result, all traded higher, and more supports were built.
EUR/USD's supports are located at 1.0730, 1.0662, and 1.0556. Higher, the pair must cross 1.0766, then the monster break at 1.0818. EUR/USD has every ability to challenge 1.0818 this week but not break yet. The overall range is located from 1.0556, 1.0583 to 1.0818. EUR/USD 1.0500’s are solid across the board. I don’t see a move back to 1.0300’s, and not anytime soon.
GBP/USD’s big break remains at 1.2790 and a long way to break. GBP/USD, like EUR, has every chance to break 1.2790 but not this week. In the way is 1.2726. Above 1.2726 and 1.2790, the flood gates could open to a higher GBP/USD in the 1.3000’s to 1.3200’s.
GBP/USD, like EUR/USD, is solid at 1.2563 and 1.2463, and 1.2400’s across the board. The good target this week is 1.2708. Deeply oversold GBP/CHF and GBP/CAD complies to GBP/USD higher. GBP/NZD and GBP/AUD are in buy drop mode to further assist GBP/USD.
AUD/USD broke 0.7155 and traveled to 0.7166, and current AUD/USD trades above with following targets at 0.7198, 0.7219, then 0.7243. Below AUD/USD is solid at 0.7063 and 0.7043. AUD/USD higher results from the break lower at the 5-year average at high 0.7200’sand target achieved at 0.6800’s.
NZD/USD begins the week in a horrible position. Low 0.6400’s remains strong support, and 0.6577 holds as the main break for higher to target low 0.6700’s. NZD/USD position reflects the same neutral yet horrible positions as GBP/NZD and EUR/NZD.
Recall EUR/NZD target at 1.6500’s from 1.5900 lows. It took a few weeks, but the mission was accomplished. Watch NZD/USD this week at 1.6451 and supports across the board at 1.6300’s and 1.6200’s.
JPY Cross Pairs
JPY cross pairs short this week offers the best trade opportunities beginning with GBP/JPY, EUR/JPY then CAD/JPY as the best three currency pairs. Note GBP/JPY's closes over the past four weeks: 160.45, 159.79, 158.42, 160.99, and 161.27. Not much to JPY cross pairs except trading around ranges without significant breaks. JPY cross pairs are to trade massive ranges and offer the best trade profits.
No changes to USD/JPY and USD/CAD from Thursday’s post.
The U.S. Dollar Index
DXY sits on solid supports at 101.00’s and 100’s and explains why EUR/USD will struggle to break 1.0800’s. DXY above must break 102.26, 102.94, then 103.23, below 101.62, then 100.81.
The S&P 500
S&P 500 ranges expanded from 700 points at 4800 to 4100’s to now 4800 to 3800 or 1000 points. Ranges now hold at 4016, 4063 to 4318. Each must break to target lower or higher prices.
WTI Crude Oil
WTI crude oil sits from 114’s above to 111’s below. Each must break to target lower or higher prices.
Overall, markets this week trade normally, in ranges and without dramatic moves to break significant averages.