Weekly Forex Commentary March 14, 2021

EUR/USD ranges this week severely diminish due to problems within the EUR universe. EUR/JPY remains light years overbought while EUR/NZD and EUR/CAD maintain oversold conditions. EUR/CAD broke its 5 year average at 1.4955 and trades ranges from 1.4955 to 1.4547 then 1.4427. EUR/GBP is oversold however it trades between 0.8740 to 0.8414 to the 5 and 10 year average. EUR/USD cross pairs will determine EUR fate this week to direction. 

GBP/NZD from this week’s close at 1.9374  sits on supports at 1.9330 and 1.9246. Last week vitals from 1.9318 to 1.9188 and the week prior 1.9318 to 1.9176. GBP/AUD from its close at 1.7927 contains resistance at 1.7934 then 1.8134 and last week 1.8130 to 1.7905 then 1.7885 to 1.8130. Both are problem pairs entering into the new week.

Week 7 to massively overbought JPY cross pairs. For the month, NZD/JPY rose 100 pips, barely 200 for AUD/JPY and EUR/JPY, 400 for GBP/JPY and a rare day for 400 pips to CAD/JPY. CAD/JPY beat USD/CAD by 100 pips as USD/CAD traded 300 pips. traditionally, USD/CAD always trades wider ranges than CAD/JPY as CAD/JPY is the follow pair to USD/CAD.

USD/CHF and USD/JPY begin the week deeply overbought while USD/CAD is severely oversold. The strategy this week is long USD/CAD, short CAD/JPY and refrain from trading laggard currencies, USD/CHF and USD/JPY. For problem pair USD/JPY lower must break the 5 year average at 108.98 then 106.43. Above at 109.00’s and 110 is maximum to USD/JPY averages dating to 1999. 

While GBP/JPY and GBP/CHF are overbought, GBP/CAD matches EUR/CAD to oversold and GBP/NZD and GBP/AUD as problem pairs. GBP/USD like EUR/USD is hostage to its cross pairs for direction. 

AUD/CAD and NZD/CAD both broke below vital points at 0.9737 and 0.9073. With NZD/CAD’s break lower, NZD/USD’s close at 0.7173 sits 53 pips above its vital break at 0.7120. Overbought NZD/JPY and NZD/CHF will assist NZD/USD’s eventual break at 0.7120. Then AUD, GBP and EUR slide further. 

AUD/USD big break lower is located at 0.7641. AUD achieves this challenge by breaks lower at 0.7716 and 0.7679. 

Gold remain inside 1815 to 1642. DXY 91.43 Vs 92.78 and 89.95 below. The 2 year yield broke above reported 0.1511 to trade 2 points higher to 0.1711. The 10 year yield at its 1.625 close, trades inside its wide ranges from 1.3305 to 1.8448. 

Respectfully readers, I work extraordinarily hard consistently over 17 years to write the most accurate levels, entries and targets, to bring the most accurate data and market concepts. Don’t believe my words as all is documented here.

EUR Day Trade vs CPI

European Inflation at current 0.9 trades between the German 10 and 20-year yield from 0.67 to 0.944, above the Deposit rate at 0.50 and above Eonia, the overnight rate at 0.52. Inflation trades above 12 month Euribor at 0.51.

At Inflation’s release yesterday, EUR/USD was located at a significant 1.1887 but overall to the day trade, EURUSD was in a dead neutral position. No trade was available for CPI.

EUR/USD’s option upon release was the next highest and lowest points at 1.1894 and 1.1879. After the release, EUR/USD traded 1.1894 to 1.1881 or 13 pips but 7 pips above 1.1887 and 8 pips above 1.1879.

As accurately stated, pay no attention to CPI. From 1.1887, EUR/USD required a severe miss to CPI in order for a trade to exist. From consensus at 1.7 and last at 1.4 or 0.3, a CPI miss to forecast was nearly impossible.

Europe reports Inflation tomorrow and again don’t bother as 0.9 current Inflation is locked in place between many significant points as highlighted above. Not only CPI locked in place but the main question is CPI overbought or oversold. Rarely if ever is CPI overbought or oversold in any nation.

The true movers to releases are economic such as GDP, Industrial Production, Retail Sales, Inventories, Trade Balance. EUR/USD is actually an interest rate but it’s also most specifically an economic document. Economics and interest are synonymous and move in combination to each other and both assist to correctly price EUR/USD.

Today is ECB and the EUR/USD is located in a trap situation as the same trade exists for today’s day trade as was forecast through the Asian session. We’re dealing with the same levels, targets and already 7 hours from Asia and 5 hours remain.

The Day Trade

1.1862, 1.1869, 1.1874, 1.1877, 1.1884, 1.1889, 1.1997, 1.1905, 1.1913

1.1929, 1.1937, 1.1944, 1.1952, 1.1969, 1.1967, 1.1974, 1.1982

EUR/USD trades at day’s highs, short is the only trade.

Day Trade and CPI

Calculations to CPI changed from a calculation on its own to see true CPI to the Democrat party desire for chained CPI. If CPI is chained then its as if the calculation is from an index based on the previous CPI release rather than a true CPI reading from the normal base period. Chained CPI holds the release month to month to extremely small moves.

CPI last at 1.4 in December rose from 1.3 or 0.10. Then 1.8 to 1.7. Since the middle 2020’s, CPI hasn’t moved quarter to quarter yet bread, milk, eggs and basic staples seems to rise every month.

The Fed had no choice to inform in 2020, it changed its CPI view to average Inflation within a range to understand CPI now means 2% may run hot or cold, above or below 2%. Central banks such as Canada lacked any choice except to follow. In reality, will we actually see 2.5% Inflation then Milk, bread and eggs rise further.

The central banks specifically the BOE in 2016 /2107 informed day trades contain 3 chances to profit and those 3 opportunities existed to Europe, UK and 8;30 am USD news events. The masters of volatility destroyers went further. CPI today in reality should offer a 100 pip move so says the BOE. Instead, CPI’s value today is ohh 20 pips The central banks stiffed traders severely.

If a trader is interested in economics then CPI holds value but if profits to CPI is more important then here’s how the trades run today against all known price information.

In today’s price series for currencies and all market price instruments, only 4 numbers contain any value and this within 7 hours of day trades. The remainder numbers are fluff but installed to watch day trades unfolod and to allow longs and shorts since not many pips trade.

The EUR/USD price series:

12.1812, 1.1818, 1.1827, 1.1836, 1.1842,
1.1879, 1.1887, 1.,1894, 1.1902, 1.1917, 1.1924 and 1.1932.

Only 4 valued numbers: 1.1818, 1.1836 Vs 1.1902 and 1.1936. Every other number is meaningless. Most traders today will offer an entry and target possibly within this price series but respectfully, those numbers are wrong for entries and targets. For the vast majority of 7 hours, prices remain neutral and untouchable within the price series.

Day trades are either a long waiting game to screen watchers for the correct price to trade or set entries and targets then enjoy the day. And pay no attention to CPI.

FX Weekly March 7

Currency markets this week remain in pivotal positions however added to the week is NZD/USD at 0.7139, 

GBP/CAD 1.7484

AUD/USD 0.7652

USD/CAD 1.2771,

CHF/JPY 116.65

AUD/NZD 1.0765

AUD/CAD 0.9768 and 

NZD/CAD 0.9113

Ranges are wide this week and markets are easily capable to handle the big moves expected. Watch in particular EUR/NZD and EUR/AUD then GBP/USD. 

AUD/USD and NZD/USD topside pairs NZD/CAD and AUD/CAD both broke lower and signifies its a matter of time before AUD/USD and NZD/USD break and trade much lower. Bottom pairs AUD/CHF and NZD/CHF are both overbought and assists to further downside to AUD/USD and NZD/USD. 

GBP/AUD last week’s vital points were located from 1.8130 to 1.7885. This week 1.8130 to 1.7905. GBP/AUD broke 1.7885 and traded 80 pips lower. GBP/AUD correlates to GBP/USD at – 64% and caution is warranted to trade GBP/AUD.

GBP/NZD last week reported ranges from 1.9318 to 1.9176. This week 1.9318 to 1.9188. GBP/NZD last week first  broke 1.9176 to trade 82 pips to 1.9094. GBP/NZD then traded above 1.9176 to achieve 1.9415 highs and closed at 1.9290 vs last week’s close  at 1.9244. GBP/NZD correlation to GBP/USD run -43% and caution to this week’s trade. 

EUR/USD and all EUR pairs are deeply oversold and matches to richter scale overbought to USD/JPY and USD/CHF. Moves lower to USD/JPY and USD/CHF are corrective unless 105.70 and 0.9064 breaks lower. EUR/USD higher is corrective unless 1.2020 and 1.2034  trades higher. Weeks ago was reported EUR/USD targets at 1.1800’s and 1.1700’s. 

JPY cross pairs represent the best market moves for most pip gains beginning with GBP/JPY as all JPY cross pairs are overbought and current prices are miles to high. 

Last post was shown GBP/JPY true moving averages and the 20 day is located at 148.38 then the 50 day at 145.26. The 20 day average matches the 10 year average at 148.36 and off by 2 pips. A break at 148.00’s then GBP/JPY larger range becomes 148.38 to 142.30. 

Watch EUR/CAD higher this week, EUR/GBP oversold and GBP/USD overbought. 

Next 2 and 10 year yields, levels, ranges and targets. Inflation as a 3 month interest rate and its relationship to the 2 year yield. 

GBP/JPY Vs GBP/USD and USD/JPY – March 6th, 2021

GBP/USD last week fell 236 pips from 1.4015 to 1.3776 while overbought GBP/JPY rose 257 pips from 148.14 to 150.71.

Known since the 1930’s, the Japanese pegged GBP/JPY to UK Gold for not only economic viability but the first incursion to the western world of finance. The standard to hold GBP/JPY to the UK held throughout Bretton Woods. Upon the 1972 free float, GBP/JPY became attached permanently with high +90% correlations to GBP/USD.

All JPY cross pairs followed with high and positive correlations as AUD/USD and AUD/JPY, NZD/USD and NZD/JPY, EUR/USD and EUR/JPY while USD/CAD and CAD/JPY became polar opposites as both permanently correlate negatively. USD/CHF and CHF/JPY traditionally also hold opposite correlations.

The Japanese offered not only a double trade but GBP/JPY and GBP/USD as the same exact currency pairs. The same principle holds true for EUR/JPY and EUR/USD, AUD/USD and AUD/JPY and NZD/USD and NZD/JPY. The double trade is permanent for USD/CAD and CAD/JPY.

Why JPY cross pairs remain overbought into week 6 amd not falling with counterpart currencies is the USD/JPY problem to correlations. While GBP/USD correctly correlates to GBP/JPY at +94%, GBP/JPY also not correctly correlates to USD/JPY at +83%. A further problem exists as GBP/USD correlates to USD/JPY at +46 %. All correlations are not only running positive but this situation is the exact same for AUD/JPY, NZD/JPY, EUR/JPY, CAD/JPY and explains why prices remain high and overbought.

Positive correlations are the result of exchange rate prices and relationships to moving averages since correlations are found within the context of averages. USD/JPY trades above vital 105.70,  GBP/USD above 1.3697 and GBP/JPY above 144.80. Correlations are positive because prices trade above respective high / low averages.

Required to assist GBP/JPY to drop is GBP/USD breaks 1.3697 or USD/JPY trades below 105.70. GBP/JPY then decides to fully correlate to USD/JPY or GBP/USD. GBP/JPY in every instant follows GBP/USD as the 91 year correlation and order of currency markets.

Current GBP/JPY trades 1156 pips above GBP/USD and 2506 pips below GBP/CAD. GBP/JPY larger range from GBP/USD becomes 144.08 and 1.5564. GBP/JPY above is located the 14 year average at 155.38 and the 10 year at 148.36.

Prior to the 2016 interest rate changes by the central banks, the market order to currency pair arrangement existed as GBP/USD, GBP/JPY, GBP/CHF then GBP/CAD.

The new order is arranged as GBP/CHF, GBP/USD, GBP/JPY then GBP/CAD and seen as GBP/CHF 1.2855, GBP/USD 1.3820, GBP/JPY 149.86 or 1.4986 then GBP/CAD 1.7292. Much daylight exists for GBP/JPY to trade freely between GBP/USD and GBP/CAD yet 250 pips traded last week from a distance of 1100 and 2500 pips between exchange rates.

Why GBP/CHF and all currency  pairs arranged as Other Currency / CHF dropped from contention as support is due to the uniqueness to the SNB’s interest rate system. Libor is miles from actual interest rates as first comes Saron, Call Money rates and the most vital Debt Register Claims.

JPY cross pairs overall contain downside moves from GBP/JPY at 300 pips and 200 for AUD/JPY and NZD/JPY.

USD/JPY for the week is not only light years overbought but the 5 year average is located at 109.01. A good target is found at 106.65.

GBP/JPY big break lower is located at the 10 year average at 148.38. A break then GBP/JPY trades 146.00’s easily.

GBP/USD this week opens between 1.3768 and 1.3840. Below 1.3768 challenges most vital 1.3697, above 1.3840 then GBP/USD travels much higher.

GBP/CHF and GBP/CAD run good and positive correlations at +93% and +96 % for GBP/CAD. For GBP/NZD and GBP/AUD remain problems as correlations run negative at -43% and -64% for GBP/AUD.

GBP/JPY

Included are GBP/JPY moving averages from 5 day to 253 days. The averages are perfect and derived from the ECB. The first number is the day average followed by trading days then the average.

A 20 day average is actually 15 days, a 50 day average is actually 36 days. Trading day averages to factor perfectly start at the beginning of every year then the numbers increase as days trade. A 50 day average is most stable as it only trades 36 to 50 days.

A 5 day average begins Monday at 2 days, then 3 for Tuesday and Wednesday and 4 for Thursday. A full 5 day average only trades on Fridays.

5 Day     5             149.2391

10 Day  9             149.1325

20 Day  15           148.3808

50 Day  36           145.2691

100 Day               71           142.5398

200 Day               143       139.9417

253 Day               180       139.1231

As GBP/JPY trades lower then the averages drop.

Targets

Targets are not only known miles ahead but targets stack to watch trades unfold.

Current targets: 149.7549, 149.8496, 149.5086, 148.1852, 146.0887, 143.7901, 143.0356.

The ECB and most central banks factor exchange rates to 6 decimal places and 4 for USD/JPY and JPY cross pairs and I follow the ECB exactly.

GBP/USD Day Trade and Currency Markets Next Week

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.

GBP/USD Day Trade March 4

Vital high /low points remain intact except for EUR/USD at today’s 1.2050. While 1.2050 is a crucial number from the drop at week’s beginning at 1.2061,  the ultimate change of trend sits at 1. 2020. A dark area exist between 1.2050 and 1.2020. Dark areas exist often to prices and normally its considered neutral zones or vital areas between two vital moving averages.

USD/JPY at 107.00’s trades deeply overbought above 105.46. If USD/JPY continues to trae above 105.00’s then EUR/USD must break lower to lead the non USD pairs lower to include GBP/USD, AUD/USD and NZD/USD.

As reported to the weekly note, GBP/AUD broke  1.7885 and traded 85 pips lower to 1.7810 or 75 pips, an odd number again. GBP/NZD broke lower to 1.9093 from 1.9176 or 83 pips.

DXY’s vital MA at 91.43 traded to 91.36 failed to break higher then dropped to 90.63 or an overall drop of odd number 73 pips.

GBP/USD Day Trade

Yesterday’s target at 1.4010 traded to 1.4005 and as written short was the trade to target 1.3947.  GBP/USD achieved 1,3947 just 2 hours later for +58 pips and actually traded to 1.3945. GBP/USD then spent the next 3 hours in a 1.3944 to 1.3971 range or 27 pips  and no trade was available. The best of the trade short was taken immediately however due to the day trade time, the written word and location of GBP, the only trade was short.

What was traded yesterday and traded every day is 3 news announcements for Europe, UK and the United States at 8:30. Day traders last chance to profit is 8:30 then day trades end at 9:00 until the new market time change in 2 weeks. Trades will then run from 2:30 am to 10:00 and meld directly into ECB at 10 am. The overall trade everyday is the GBP/USD Vs USD/GBP relationship. Was yesterday’s high at 1.4005 the result from GBP/USD or USD/GBP.

Today GBP/USD Day Trade

At 2 hours into today’s trade, GBP/USD traded 1.3967 to 1.3939 or 28 pips. Note 1.3939 as yesterday’s vital point to short and trade lower. While yesterday’s 1.3939 held significance, today it doesn’t exist as vital to the overall price path as support, resistance or trade level.

Here’s today’s GBP/USD

1.3886, 1.3892, 1.3903,1.3904, 1.3912, 1.3921, 1.3930, 1.3939, 1.3948,

Above: 1.3965, 13974, 1.3983, 1.3992, 1.4001, 1.4010, 14019 and 1.4028.

Yesterdays’ 1.3885 as a vital point to target lower becomes most important to the downside. As stated many times, prices don’t trade but rather they shift as a structural change.  GBP/USD holds a cluster at 1.3904 and 1.3903 and should serve as today’s long point to target first 1.3921.

Support and resistance imports for today 1.3904, 1.3921 vs 1.3992 and 1.4028.

While 1.3903 and 1.3904 serves as solid support, both points match to USD/CAD 1.2611 and 1.2612. If GBP/USD breaks lower at 1.3904 and 1.3903 then USD/CAD will trade higher from 1.2611 and 1.2612 to target 1.2629 and 1.2636. Brek of 1.2644 then higher and GBP/USD lower must cross 1.3959.

February Trades and Results

S&P Shorts 3958 achieved lows 8 days later at 3784 for +174 points. A short-only strategy was offered due to severely overbought prices and the 3500 target. Thes best and easiest trade was entered immediately. 

Gold short 1815 to target 1728 achieved 87 points 3 days later and Gold then traded 1736 to 1705. The best and easiest of the trade was taken and achieved for profit. 

DXY informed 91.43 to 89.95 range and trades at severe monthly average lows. 89.95 broke to 89.68 then traded back to 89.95 to 91.43 range. 

EUR/USD day trade long target 1.2141 achieved its destination perfectly then profit was gained for shorts. 

GBP/JPY 148.31 break and trades to 150.11 for 180 pips. 

Weekly and daily trades are offered vital levels to price paths to monitor and watch trades unfold and to take profits anywhere along the way. 

Double trade to EUR/USD and USD/JPY matched perfectly to each pair’s respective levels for multiple longs and shorts. 

Weekly EUR/USD short 1.2168 to target 1.2063 achieved entry and destinations perfectly for 105 pips. The daily trade matched perfectly to the weekly short entry. 

Informed to trade news announcements correctly for profit. 

DAX day trade +66 points. S&P’s day trade +25 points. Many DAX and S&P’s 24 Hour and day trades offered and profited. 

GBP/USD day trade for multiple longs and shorts +139 pips. 

USD/ZAR +2064 Pips. 

USD/RUB +49 pips. 

EUR/CAD +150 pips. 

RBNZ Yield curve presented and NZD/USD factored prices along the yield curve. 

Interest rates, long-term vital levels, 5, 10, and 15 year averages, and weekly view to multiple currencies. 

Education offered and remains constant over years.  

Trades begin at entry and end at target therefore no stops, charts nor market bantam is required. We get the job done quickly and easily. 

How we doing. Very well and very profitable.  And this is only February. 

GBPUSD 24 Hour vs Day Trade March 2 2021

If central banks are trading in the markets with today’s day trade or for the past 11 hours since the post of the 24 hour trade then central banks are short and long at my exact levels. Correctly stated, we are short and long at the central bank levels as offered freely every trade day.  Any entries, targets,ranges,  levels, tops or bottoms outside of this context is wrong. 

At 4:15 yesterday, GBP/USD was located here: 1.3853, 1.3862, 1.3871, 1.3880, 1.3886 1.3889, 1.3898, 1.3906, 1.3914.

Then 1.3928, 1.3932, 1.3941, 1.3950, 1.3959, 1.3967, 1.3976, 1.3985, 1.3994

Within the past 24 hours, GBP/USD ranged from 1.3931 to 1.3865 or 66 pips and ranges held. For 1.3965 was bottom to 1.3853 and jumped 28 pips. This trade was safe and guaranteed to profit. 

The overall goal of day trades is extra pips for the week as we trade multiple longs and shorts for 18 weekly trades. Therefore, grab extra pips and exit with additional profits. 

For 1.3931 short was located here: Most Vital: 1.3871 and 1.3886 Vs 1.3959 and 1.3994. Ugly at the top as best trade was short at 1.3959 at minimum. 

Note 1.3865 and 1.3931 as both are odd numbers. Markets are trading on odd numbers and it generally means markets are not perfect as they are when even numbers trade. For 1.3931 fell inside 2 even numbers at 1.3928 and 1,.3932 and 1.3865 traded between 1.3862 to 1.3871. When markets trade on even numbers then the levels  hit exactly. So 1.3865 would’ve traded directly to 1.3862 or 1.3871 or 1.3862 would’ve broke to 1.3853 and a perfect long. 

Now we match the day trade to the 24 hour trade. Dominant is the day trade because we have new and perfect day trade entries, levels and targets for multiple longs and shorts. 

GBP/USD Day Trade

1.3822, 1.3830, 1.3839, 1.3848, 1.3854, 1.3857, 1.3865, 1.3872, 1.3878, 1.3885

Above: 1.3900, 1.3909, 1.3918, 1.3927, 1.3935, 1.3944, 1.3953 and 1.3962. 

Most Vital: 1.3839 and 1.3854 Vs 1.3827 and 1.3962. 

The 24 hour bottom was located at 1.3853. Todays support is located at 1.3854 and bottom drops 31 pips to 1.3822. The top at 1.3994 drops to 1.3962 or 32 pips. The change in 12 hours is 30 ish pips. Also 1.3939 becomes a new support built into today’s trade. 

Note also, 1.3900. market writers insert a big deal to such 00 numbers as important but its just a number within a series of numbers and contains no relevance. 

A few vital reference points are excluded purposefully for exact trades however for this context today, short tops, long bottoms as ranges will hold. What will occur until 4:15 for 24 hour end is the day trade will hold.

GBPUSD 24 Hours Trade March 1, 2021

The 24 hour trade runs from 4:`15 PM to 4:15 PM while the day trade runs from 1:30 am EST to 9:00 am EST. An interim trade runs from 8:30 PM EST to 1:30 am EST however this trade won’t post.

This morning’s GBP/USD day trade bottom as written was located at 1.3912 and GBP bounced twice from 1.3903 for 58 and 27 pips. And that’s 14 hours since the day trade post at 2:00 AM EST.

Requirements for this trade short tops and long bottoms. No stops, charts, graphs, Fibs, news announcements. No extraneous information necessary as its all fluff and pablum.

1.3853, 1.3862, 1.3871, 1.3880, 1.3886 1.3889, 1.3898, 1.3906, 1.3914

Above: 1.3928, 1.3932, 1.3941, 1.3950, 1.3959, 1.3967, 1.3976, 1.3985, 1.3994

Most Vital: 1.3871 and 1.3886 Vs 1.3959 and 1.3994

 

GBP/USD, News Announcements and Market Changes

The new way was purposefully instituted to contain and fully control currency prices to small daily ranges as currency prices pre 2016 traded 2 and 300 pips days. This was to much movement for the central bank’s currencies as written by their own words.

Once the new procedures were implemented by the ECB, all central banks followed. Today’s result is we have moves but no movement and news releases with moves but no movement.

Pre 2016 news announcements traded to the required pip movement and news releases not in conformity to expected results also traded far and wide to the requesite pip movements. Pre 2016, traders actually earned many pips by trading only news announcements and this manner to trade cut down on screen time and market watching. Traders earned daily pips in seconds and minutes then walked away for the day.

Central banks today inform their economies are great and wonderful or not so good yet the value of their words are worth 20 pips, maybe 30 if the price was located in the right location at the time of the announcement. Pre 2016, words to a good or tanking economy would’ve sent currency prices flying 2 and 300 pips easily.

Yields, yield curves and yield spreads were once profitable trade strategies but yield curves changed radically since 2016 by its severe limitations and trade strategies required deep adjustments yet adjustments no longer employed. Yields today are so far away from a market price, its not worth the effort for trade consideration. The further yields travel along the yield curve then the farther exist reality to a true market price for trade and prediction.

For long term trades and if a trader truly understands what they are doing then a yield trade remains viable and most profitable.

The structure of markets remain the same and can’t ever change yet what changed is the range and speed to market prices. Instead of 50 and 70 pip moves for news releases, we have 20. Rather than 200 pip days, we have 100 pip weeks. A deep adjustment was required in 2016 to trade strategies and target trading. Without adjustment, traders existed under an old system that no longer exists and may never be seen again.

New market rules and trading procedures can only be accomplished by the ECB as the leading activist central bank on the planet. The recommended read is President Hoover’s memoirs to understand the deep deals and trading arrangements central banks strike among themselves. Central banks know the exact methods for higher and lower inflation dating to the 1920’s but today they sell us on this multi year effort for 2% that never materializes.

GBP/USD Day Trade

1.3912, 1.3919, 1.3929, 1.3938, 1.3941, 1.3947, 1.3956, 1.3962, 1.3972, 1.3977.
Vs 1.3991, 1.4001, 1.4009, 1.4018, 1.4027, 1.4036, 1.4045 and 1.4054.

Most vital: 1.3919 and 1.3941 vs 1.4018 and 1.4054.

Today’ s currency prices are trading on odd numbers rather than perfect even numbers. What for example is 37 or 18.5. Is 37, 36 or 38 or 37. This is the imperfect situation to all currency prices today based on the odd number system currently in operation.

Weekly Commentary – EUR, USD and GBP

EUR/USD 1.2061, AUD/USD 0.7657 and USD/CAD 1.2783 decide future and current direction to all 28 currency pairs. EUR/USD and AUD/USD breaks then much lower or much higher. USD/CAD breaks 1.2783 then much higher or a failure to break then much lower.

JPY cross pairs remain overbought and reveal EUR/USD and AUD/USD will eventually break lower and USD/CAD breaks higher. GBP and NZD will then follow lower.

Not a driver to market prices this week are the typical alarm bells written by market writers with specialization in marketing rather than expertise in markets, trading and market prices. Elections, Covid, lockdowns, vaccines, central bank meetings, yields, month-end, Fed, Powell and the Mars rover landing failed to move market prices. Not at the time of release nor in subsequent trade days did prices move except to the degree intended from the start of the day or week.

A market price will achieve its destination by mathematical certainty without regard to outside events yet professional alarm bell ringers are surprised at a rise in yields, no movements to NFP and central bank meetings and to a price that fails to respond to their sounding of the bells in the market square.

NFP and fed meetings barely moved EUR/USD 20 pips in each of the last 6 and 8 months. Whistleblowers month-end and rebalance will be heard this week. Meanwhile, monthly averages haven’t changed in many months and a rebalance nor month-end changes to prices fails to exist as price fail to move enough to require changes to averages.

DXY monthly averages remain inside 89.95 to 91.43, Gold 1815 -1642. EUR/USD traded 1.1900’s -1.2200 in February, 1.2000’s to 1.2300’s in January. The 2 year yield traded 0.11 to 0.23 in the past 9 months. The S&P’s traded 300 points from 3900 to 3600 for February, 200 points for January. WTI traded 10 points in February from 51.00 to 61, and 6 Points for January.

Our professional alarm bell ringers are long on whistles but short on market competency. A Necessary yet least favored aspect to market prices, trades, and economics is the requirement to run and enter data for a clear picture of entries and exits and to understand the economic condition. But market prices and profits were never nor will ever be the ultimate goal to reporting.

The Week

The ultimate revelation to a cautious market this week is found in GBP/AUD and GBP/NZD. GBP/AUD at 1.8059 resides inside vital range points from 1.7885 to 1.8130 and GBP/NZD at 1.9318 to 1.9176. Both GBP/AUD and GBP/NZD from oversold last week drifted higher directly into a neutral zone for this week.

EUR/AUD and EUR/NZD however are deeply oversold and contains the ability to travel higher while GBP/AUD and GBP/NZD remain stuck in neutrality.

EUR/USD led the charge higher for non USD pairs upon the break of the 5 year average at 1.1300’s last July and is in the position to take down GBP, NZD and all non USD pairs. GBP/USD must break 1.3600’s and NZD/USD 0.7100’s to assist in a wholesale trend change.

Deeply oversold USD/CHF at 0.9084 broke higher from 0.9001, CAD/ZAR trades above 11.86 and USD/CAD is on the verge of a break higher at 1.2783.

GBP/USD retains slightly overbought status while next highest exchange rate GBP/JPY is deeply overbought and next lowest GBP/CHF also opens the week in richter scale overbought. Same situation exits for EUR/USD, AUD/USD and NZD/USD as EUR/CHF and EUR/JPY are both overbought. NZD/CAD and AUD/CAD offer no assistance as leaders to NZD/USD and AUD/USD direction as both sit in neutrality.

EUR/GBP challenges 0.8732 on a break of 0.8573 or a drift to 0.8400;s. EUR/GBP traded to exactly 0.8728 Friday then lower to close at 0.8655.

DXY remains in a 89.95 to 91.43 range and a break higher at 91.43 challenges 92.78.

For a look at all of today’s economic events, check out our economic calendar.

EURUSD Feb 26th, 2021

From yesterday’s reported top at 1.2241, EUR/USD traded exactly to 1.2242 then dropped to 1.2137 or 105 pips. At 1.2137, EUR/USD was located between 1.2131 to 1.2139. While 105 pips for one leg of the trade, existed for the day, the actual trade was multiple longs and shorts. The 105 pips was a downside trade but pips were gained from previous longs.

Actual for yesterday was 2 longs and 2 shorts to profit from nearly every traded pip within the structure offered yesterday.

View my website for 2014 and 2015 and prior to the ECB interest rate changes as featured many examples to day trades by multiple longs and shorts. For longs and shorts then traded 80 and 90 pips in 1 direction as opposed to today’s 50 and 60 ish pips.

While the day trade allows for an abundance of profit pips quickly, certain days are offered trades for a 24 hour duration. Yesterday’s EUR/USD lacked criteria for a 24 trade due to small ranges and known long in advance of the day trade.

While EUR/USD was presented, 8 currency pairs are traded twice daily and 9 pairs if AUD/EUR is considered. For 8 currency pairs amounts to 80 day trades per week Then comes 18 weekly trades and traded as mutliple longs and shorts to profit from nearly all traded pips during the week.

EUR/USD Today

Here’s today’s EUR/USD

1.2097, 1.2104, 1.2112, 1.2119, 1.2125, 1.2127, 1.2134, Vs 1.2165, 1.2173, 12181, 1.2188, 1.2195, 1.2203, 1.2211 and 1.2219.

Changes from yesterday include 22 pips dropped from the upside and 19 pips from the downside. In actuality, no changes.

Gold today achieved 1753 lows from reported 1815 and next target as written resides at 1728.

DXY dropped below 89.95 to 89.67 lows and the drop allowed EUR/USD to travel higher yesterday. DXY since regained 89.95 and traded to 90.45 or 78 pips from 89.67 to 90.45.

The S&P’s traded to 3801 lows. Miles of downside remain.

 

EUR/USD, DXY and Interest Rates

All life in a market price is the beginning at parity or 1.0 then prices travel upwards. Parity is the safe number and allows a market price to trade above.

The difference between 1.0207 and 1.0070 is 0.0137 or 0.0068. By 0.0068, DXY informs the range today and only for today is located at 90.58 and 89.22. EUR/USD ranges are located at 1.2246 and 1.2110.

The problem is the ranges are to wide for today’s daytrade. Good to know this information but the daytrade will result in losses by longs and shorts entered at wrong prices and target never to materialize.

Take EUR by itself using averages and we have 1.2248 and 1.2108. Wrong again to ranges and result to trade losses. To DXY by itself and we have 90.92 and 88.87. Guaranteed losses and both not even good for future targets.

Interest rate averages change daily and informs the depth and degree of overbought and oversold in relation to parity yet its common to use those averages to gauge ranges although the day ranges are never exact for a day trade. Important is interest rate average ranges

AUD/USD became a strange currency by the last RBA drop to OCR and its the first ever fixed average at 1.0015. NZD is in the richter scale to overbought. Traditional averages once changed daily by wider movements and in relation to daily interest rates. But under the patron saint of central bank authoritarian control, no longer are wide movements seen as experienced in great trade days of old.

Consider the EUR/USD just before the ECB went negative in 2014, interest rate averages were trading at 1.04 and 1.05. Negative or not to the ECB as the EUR was flying miles lower by its own volition. NZD is a 0 point currency and trades at 1.09. This is extraordinary but noted also by a quick view.

Today’s EUR at 1.0070 is a drop from 1.0082 yesterday. Quite extraordinary, yesterday’s Fed interest rates failed to change so today we deal with the same 1.0207 and overbought for USD and oversold EUR/USD.

The second element is add daily interest rates to the structure to find the exact shorts, longs and ranges for today. Ranges are fairly fixed due to interest rates changes by small amounts.

Overnight rates once changed substantially everyday and was wholly responsible for interest rate average movements but no longer since the central bank changes in 2016. Today, interest rate maturities run prices but not by much as maturities rarely change by any movements worthy to talk about so its why daily movements became fixed into far less ranges than pre 2016.

Outlined today is the exact methodology used by central banks for their own trades. I am perfectly in line to any central bank on the planet. And its very simple to trade and factor everyday. The trade requires a click and nothing else.

EUR/USD today

1.2116, 1.2123, 1.2131, 1.2139, 1.2147, 1.2155, Vs 1.2185, 1.2193, 1.2201, 1.2209, 1.2216, 1.2224, 1.2232 and 1.2241.

Most Vital: 1`.2147 and 1.2155 Vs 1.2209 and 1.2241.

EUR/USD today dead stopped at 1.2224 and above 1.2209. EUR will go short today. The trader job is click and click.

DAX

The same interest rates used for currencies are deployed for stock indices. Here;s the DAX structure.

69.88, 34.94, 17.47, 8.73, 4.36, 2.18, slight changes daily but not much. The best the DAX can trade is 2 times its range and today that means 139.76 points.

S&P’s

Here’s the structure: 19.63, 9.81, 4.90, 2.45, 1.22. The best the S&P’s can trade s 2 times its range or 39.26 points. Slight changes daily but very small. The structure for stock indices and currencies is fixed but the fix is what earns profits.

AUD/USD and NZD/USD, RBNZ Vs RBA

Recall past articles just a few short years ago to reveal OCR and AUD contain negative correlation at -90%. Written only a few short years ago but covered 10 years of data and enough to account for any future RBA cuts.

The smart move for the RBA particularly under most respected big Glenn Stevens was raise OCR to drop AUD as was Stevens desire for a lower AUD in line to the RBA’s Commodity Index. Big Glenn Stevens expertise however was in Economics rather than market assessment and trading. Lowe is quite different as he contains a degree of understanding to markets and particularly interest rates.

At 0.25%, the RBA would remain competitive to its partner at the RBNZ at 0.25% and far above all nations current interest rate settings. The RBA’s position to retain OCR to positive rather than negative rates offered a daily fixed interest rate system against a negatively correlated AUD. The RBA at 0.25% contained much more room to adjust daily interest rates to its desired AUD levels but now the RBA is completely stuck with a fixed interest rate system and an unwanted AUD level.

OCR has only one way to travel and its up unless the RBA adopts negative interest rates which is no big move as the interest rate scale adjusts from positive to negative. OCR will remain negative to AUD only under a different interest rate number.

While the RNBZ retains 0.25 OCR, NZD/USD rose 1500 pips from 0.5800 to 0.7300’s and accomplished in 10 months from April 2020. NZD is no different from any currency pair on the planet however the RBNZ is the smarter central bank among all central banks due to its ability to manage daily OCR and NZD to its desired moves and levels.

NZD’s 10 year yield dropped 6 points, the 5 year dropped 4 points and the 2 year fell 3 points. The difference between NZD before and after the RBNZ statement is Zero and no effect to the exchange rate. RBNZ interest rates from yesterday to today failed to change and NZD won’t change except to trade its normal daily movements.

Stimulus remains but no daily interest rate changes under new or existing stimulus is meaningless. Correct is stimulus automatically drops interest rates as traditional money supply/ stimulus and interest rate relations shares its negative relationship. The central banks managed to fix the interest rate system within their own economies under strict authoritarian control.

NZD/USD rose today rose from 0.7360 to 0.7392 or 32 pips. NZD didn’t even trade to its daily target at 0.7408 and 0.7403. Did we know last evening the RBNZ delivered a monetary policy statement. Does it matter. No it doesn’t under a fixed interest system.

The RBNZ could’ve delivered a statement that said it would spend every last NZD nickel on stimulus but if interest rates remained the same then the results to NZD trade would’ve remained the exact same.

The Inflation story no longer flies as interest rates remain the exact same everyday. Inflation under the RBA and RBNZ scheme however is far different than any central bank as Inflation must be understood from Trade Ables to Non Tradeables. And here is found the Exports and Imports and exports says the RBNZ is running above imports. This says Inlation is contained and not a problem to run wild. The RBNZ factors Inflation to Oil at 0.4 and as Oil remains elevated then this further reveals Inflation remains a non existent problem for the RBNZ.

The S&P’s from reported overbought status dropped 139 points so far from 3958 to 3803 and a long way to drop. Gold remains under 1815. The DXY remains within 89.95 to 91.43 however current 90.03 trades at the lower end.

GBP/JPY broke 148.31 and traded to 150.11 highs or overall 2400 pips from 126 lows. Watch EUR/JPY 128.16.

USD/CAD is on the verge of a break at 1.2586 and 1.2582. A break lower places USD/CAD from 1.2582 to 1.2029 and targets 1.2305. USD/CAD dropped 2000 pips from 1.4500’s. DXY will decide CAD’s fate.

Here’s AUD/USD for the next 12 months

0.7309, 0.7637, 0.7821, 0.7941, 0.8062, 0.8187 and 0.8303.

Here’s NZD/USD.

0.6840, 0.7120, 0.7267, 0.7356. 0.7445 and 0.7535. However 0.7400’s NZD is not on the radar screen in its current MA’s to understand the depth of overbought.

For a look at all of today’s economic events, check out our economic calendar.

Weekly Round Up – February 21st, 2021

AUD/USD broke its long standing and much written line at 0.7821 and traded 57 pips to 0.7877. Above 0.7821, AUD/USD ranges between 0.7821 to the 10 year average at 0.8305 or 484 pips. Below 0.7821, AUD/USD trades 0.7821 to 0.7308 or 513 pips. Below 0.7821 exists 0.7605.

DXY last week maintained its 148 pip range between 89.95 to 91.43. Above 91.43 next targets 92.78 in a 135 pip range.

GBP as written in the last post maintains deep overbought status across all GBP pairs except GBP/NZD. Watch 1.9136 this week for best moves.

EUR/USD opens in fairly perfect neutrality however ranges continue to compress. Problem pair EUR/JPY and all JPY cross pairs maintain deeply overbought status for week 4. EUR/CAD, EUR/NZD and EUR/AUD open the week massive oversold. EUR/CAD and EUR/AUD will provide the best moves.

Stand clear EUR/CHF as AUD/CHF and NZD/CHF will provide better movements.

NZD/USD 0.7267 then 0.7356 Vs 0.7267 and 0.7990. NZD/CAD is overbought while NZD/JPY heading into week 4 maintains richter scale overbought status.

Overall, NZD/USD traded 200 pips from 0.7100’s to 0.7300’s for the past 2 months and provided support to GBP and AUD to allow both to move higher. Explains the divergence seen in EUR/NZD Vs GBP/NZD this week.

USD/JPY watch 104.97 and USD/CAD 1.2587 Vs 1.2826.

 

 

GBP 50 Year Averages and Week Trade Targets

From 1972 – 1984, GBP/USD traded 2.6110 to 1.3075 lows in August 1984 or 1300 pips and a mid rate at 1.9592.

From 1984 -1996, GBP/USD traded 2.0105 highs in September 1992 and 1.0790 lows in February 1985 or 9315 pips and a mid rate at 1.5447. The unusually large pip movements is attributed to the September 1985 Plaza and February 1987 Louvre Accords The Plaza Accords allowed USD depreciation while the Louvre Accords sought to stop USD’s decline.

From 1996 – 2008, GBP/USD traded highs at 2.1162 in November 2007 and 1.3679 lows in January 2001 or 7483 pips and a mid rate at 1.7420.

From 2008 -2021, GBP/USD traded highs at 1.9844 August 2008 to 1.1981 lows January 2017 or 7863 pips and a mid rate at 1.5912.

From 2019 to 2021 and 1.1986 lows to current 1.4035 highs, GBP/USD traveled 2049 pips or 1025 pips per year to a mid rate at 1.3010 or close to the current 5 year average at 1.3069.

From the 50 year period at 2.6110 highs to 1.0790 lows, a mid rate exists at 1.8450. GBP/USD historically from current 1.3998 remains quite low however not only is GBP/USD and GBP cross pairs massively overbought but vital levels now approaches.

5, 10 and 14 year Averages

Current GBP/USD trades 1368 pips between 5 and 10 year averages from 1.3069 to 1.4437. Prior to 1.4437 exists a huge line at exactly 1.4300. Above 1.4437 exist 1.5254 at the 14 year average or 817 pips. Historically, its impossible for a currency price to exist within a 10 and 14 year average due to compressed ranges as a massive breakout move always occurrs.

Below exists 4 massive support lines at 1.3832, 1.3753, 1.3684 and 1.3609. A break of 1.3609 is required not only for a much lower GBP but a massive 540 pip trade range.

Not only is GBP/USD against 1.4300 and 1.4437 but GBP/JPY approaches its 10 year average at 148.30 and currently trades between 5 and 10 year averages from 142.39 to 148.30 or 591 pips. GP/USD trades 1368 pips between 5 and 10 year averages while GBP/JPY trades 591 and less than 1/2 GBP/USD.

EUR/GBP from current 0.8647 trades between 5 and 10 year averages from 0.8729 to 0.8414 or 313 pips. GBP/EUR from current 1.1564 trades between 5 and 10 year averages from 1.1472 to 1.1937. GBP/USD breaks lower when EUR/GBP trades above 0.8729.

For the week, trade instruction is short anywhere and for any GBP currency pair however GBP/USD targets 1.3750 . At 1.3750, GBP/USD remains deeply overbought. No thrills and caution to GBP/NZD.

For a look at all of today’s economic events, check out our economic calendar.

NZD/GBP and Close Price Forecast

At 0.7088 and a rising line, the NZD showdown is on the way as ranges compress by the week.

A lower NZD automatically assists to a drop in non USD currencies GBP/USD, EUR/USD and AUD/USD. Required for an NZD/USD drop is NZD/CAD breaks 0.9091, NZD/CHF 06367 and NZD/JPY must clear its 10 year average at 75.46. NZD/USD is following NZD/CAD to trade in tight 200 pip ranges while NZD/JPY remains in severe overbought territory.

GBP/USD next above confronts 1.4300 and the 10 year average at 1.4438 while massive overbought GBP/JPY remains confined between 5 and 10 year averages at 142.40 to 148.29. Both GBP/USD and GBP/JPY as GBP drivers force GBP/NZD, GBP/CAD and GBP/CHF into stratospheric overbought and untouchable as long trade currencies. Short GBP currencies are the only trade strategies available especially to GBP/USD’s 900 pip rise in the past 3 months from 1.3100’s to 1.4000’s.

Close Prices Forecasts

EUR/USD 1.2082

EUR/JPY 127.22

EUR/CAD 1.5408

EUR/NZD 1.6799

EUR/AUD 1.5548.

GBP

GBP/USD 1.3921

GBP/JPY 146.56

GBP/CHF 1.2453

GBP/CAD Doesn’t matter, short anywhere

GBP/NZD 1.9223

GBP/AUD 1.7818

AUD

AUD/USD 0.7776

AUD/JPY 81.95

AUD/CHF 0.6956

AUD/CAD 0.9877

NZD/USD

NZD/USD 0.7224

NZD/JPY 76.16

NZD/CHF 0.6437

NZD/CAD 0.8142

USD/CAD 1.2704

USD/JPY 105.18

EUR/USD Vs USD/JPY and the FX Cross Pair Divide

Overall currency markets are in the great deadlock between natural opposites EUR/USD and USD/JPY. Current USD/JPY at 105.74 trades 84 pips above its vital high/ low point at 104.89. This line is rising. EUR/USD trades around its current high /low point at 1.2039. This line moved 1 pip lower since yesterday’s ECB at 10 A.M. EST. EUR/USD and USD/JPY achieved its crowning achievement by rhe great divide to currency pairs.

USD/CAD at 1.2600’s and GBP/USD at 1.3800’s or 1200 pips informs this distance is far to wide. GBP/USD trade to 1.4000’s while USD/CAD was located at 1.2500’s or 1500 pips assisted to diminish the distance yet 1200 pips informs a big move is ahead. Normal distance is 3 to 500 pips.

For the past four weeks as written, JPY cross pairs were and continue to trade in severely overbought territory. The degree of overbought is recognized as 500 pips from AUD/USD 0.7700’s and AUD/JPY at 82.00’s and 500 pips from NZD/USD 0.7100’s to NZD/JPY 76.00’s. Normal is in the vicinity of 100 to 200 pips maximum because NZD/USD and NZD/JPY are the exact same currency pairs much the same as AUD/USD and AUD/JPY.

The divide grows wider at 800 pips from GBP/USD 1.3600’s to GBP/JPY at 147.00’s and 700 pips from EUR/USD 1.2000’s to 127.00’s for EUR/JPY and normal is 100 to 200 because GBP/USD and GBP/JPY are the exact same currency pairs much the same as EUR/USD and EUR/JPY.

USD pairs EUR/NZD at 1.6700’s trades 2500 pips to GBP/NZD 1.9200’s. Normal trades around 1600 to 1800 pips and 700 pips off kilter.

The EUR/USD and USD/JPY relationship is distinguished by the massive and extreme divide between and among currency pair prices, particularly USD and overall cross pairs as the primary driver to current prices.

Today’s trade is presented as a two trade option by matching significant day trade support, resistance and levels. Short the highs and long the lows.

USD/JPY highs Vs EUR/USD Lows.

USD/JPY up target 106.43 vs EUR/USD 1.1985 lows.

USD/JPY 106.36 Vs EUR/USD 1.1998.

USD/JPY 106.29 V EUR/USD 1.2011

USD/JPY 106.16 Vs EUR/USD 1.2015

USD/JPY 106.09 Vs EUR/USD 1.2023

USD/JPY 106.03 Vs EUR/USD 1.2028.

USD/JPY 105.96 Vs EUR/USD 1.2034.

EUR/USD Highs Vs USD/JPY lows

EUR/USD 1.2107 Vs USD/JPY 105.37

EUR/USD 1.2099 Vs USD/JPY 105.44

EUR/USD 1.2091 Vs USD/JPY 105.51

EUR/USD 1.2076 Vs USD/JPY 105.58

EUR/USD 1.2068 Vs USD/JPY 105.63

EUR/USD 1.2061 Vs USD/JPY 105.71

EUR/USD 1.2053 Vs USD/JPY 105.79

EUR/USD 1.2049 Vs USD/JPY 105.87.

EUR/USD is a complete opposite pair to USD/JPY however prices never match pip for pip as the relationship runs 7.62 pips for EUR/USD Vs 6.62 for USD/JPY.As a side note all market prices especially Stock Indices are factored the exact same as a currency price. The difference is in the name and number yet its all the same.

Not many pips trade anymore as the old days of trading therefore pips and profits are maximized by multiple longs and shorts per currency pair. All information is known in advance of the trade therefore no stops, charts and whatever is needed nor applied.

Targets and Trades: EUR/USD, Gold, Silver, DAX, S&P

Gold and DXY as not only complementary financial instruments that must by no other choice trade together in the same location by market order but both are non risk assets and traded against the risk asset of the S&P’s.

DXY eventually broke its 5 year average and traded to 89.22 lows, S&P’s traded higher and Gold became the mis placed financial instrument. DXY below the 5 year average at 95.00’s and Gold above at 1461.20 informs Gold remains misplaced.

Either Gold breaks below 1461.20 and joins DXY in its rightful position in the proper market order or DXY breaks above its 5 year average at 95.00 and the S&P’s trades below its 5 year at 2722.43. Its customary for DXY, Gold and the S&P’s to share negative correlations and nearly impossible for a positive correlational relationship unless the relationship of off kilter.

Silver also trades above its 5 year average at 17.74 and misaligned to DXY and the S&P’s. Silver’s first break is located at 21.72 then 19.36 and 19.06. Silver’s best move to target 17.00’s is located on the break below 19.06. The first target is established at 26.43. Not much to report to Silver as its price is a dead issue and not worth the trouble. EUR/GBP and NZD/USD not only moves far and wide but both earn more profits and quicker than a Silver trade.

The S&P’s long 3915.15 to its first target at 3924.99 achieved its destination however lows traded to 3918.52. Not much existed to the S&P trade overall nor was much expected particularly after a Monday holiday and no change to daily interest rates.

S&P and DAX Trades

Today’s S&P’s for a quick trade is long 3912.92 to target 3922.75 then 3927.66.

Today’s DAX for anothe quick day trade is long 13994.27 to target 14029.43 then 14054.60.

EUR/USD

Yesterday’s EUR/USD dropped exactly at the confluence of the daily and weekly entry at 1.2168 and target at 1.2065 achieved however lows traded to 1.2063 for an extra 2 pips.

EUR/USD

For the 2ng leg to the weekly trade as posted Sunday, EUR/USD is in a crucial position and quite the opposite to the ease of the first trade yesterday. EUR/USD’s significant high/low point is located at 1.2040 and a break lower then much room exists for a drop to 1.1947.

Today’s longs are located at 1.2065 for the weekly target at 1.2114 and the daytrade location is 1.2117.

To add a 3rd leg due because our trades are continuous and never end, short at 1.2114 and 1.2117 targets 1.2094 and 1.2090. EUR/USD low point today is located at 1.2033 and 1.2026 and the daily target on a break of 1.2040.