Only on rare trade days is a price path vanquished. Upon a rare break, the market offers free money as a price must tade back to the respected price path.
From 1.3915, GBP was located between 1.3912 to 1.3921 while 1.4017 fell short of 1.4019 and 1.4028. Long targets this week achieved better progress than downside shorts. Why is because of the deep nuance of a currency and any market price. Downside prices to all financial instruments factors vastly different than upside targets and most particularly to day trades. Weekly and long term target trades computes differently from a day trade.
GBP/USD’s drop from Powell at 1.4017 to 1.3882 violated 1.3886 by 4 pips. The day trade held despite ECB’s entry into markets.
GBP/USD this week is characterized as a range trade due to rises from from lower ranges and up target failure to trade fully to exact points. Quite a dangerous situation as the full potential to price paths failed to materialize. Normally this is an early warning to stand clear especially when 7 other currencies exist to trade and also if USD/CAD is off kilter to GBP/USD. Both pairs define overall currency markets as perfect opposites.
No stops or charts are required for day trades as price paths are known in advance and informs specifically to entries and targets. No mysteries exist as central banks are never wrong to freely offered day trades.
EUR/USD broke 1.2050 then 1.2020 and traded 106 pips to 1.1914. EUR/USD is now established as a short only strategy. NZD/USD as bottom currency becomes the defining pair by a break of 0.7138. A break lower brings down the house to non USD pairs, specifically GBP and AUD/USD at current 0.7652. NZD/USD bottom price today is located 0.7136 so crucial for NZD/USD to break 0.7138 later today after ECB or Monday.
DXY not only broke reported 91.43 and traded 60 pips higher to 92.03 but the break higher assist rises to all USD pairs and specifically USD/CAD as the laggard to USD to not cross higher at 1.2775. USD/CHF broke 0.9054 and traded 0.9309 highs while CAD/ZAR crossed above 11.88 to trade currently 12.0632.
USD/JPY broke above 105’s yet USD/JPY is off sync to USD, currently overbought and not worth trade consideration long into the future.
DXY now ranges from 91.43 to 92.78 and next hurdle is located at 94.39 to range 92.78 to 94.39.
The factor to USD/CAD is the result of Canada’s TSX Composite as Correlations are more specifically opposite and closer to USD/CAD’s price far more than WTI. Consider an average daily move for the TSX begins at 90 points and normally trades far more than 90 and much more than the DAX.
Stock markets as risk assets are all not only falling but contain far more downside. The TSX drop will assist USD/CAD higher.
WTI traded 4 points yesterday Vs USD/CAD 118 pips. Wednesday WTI traded 3 points to USD/CAD 67 pips. Long term, USD/CAD may share decent correlations to WTI but short term and to day trades, correlations break down and hover weakly between negative and positive.
GBP/USD Day Trade
GBP/USD is located in a dangerous location below 1.3818. Correct is GBP/USD trades to 1.3831, 1.3852 and break above 1.3888 then comes 1.3949 and 1.3958.
My currency arsenal contains 476 currency pairs and always open to suggestions for a specific currency or currencies to trade.