Currency market: GBP/CHF, USD/CAD and GBP/USD
|Currency markets to USD Vs Non USD are defined by USD/CAD and GBP/USD as 2 most and visible opposites much the same as EUR/USD to CAD/ZAR. The driver to GBP this week was GBP/CHF and USD/CAD;s moves were driven by the GBP/CHF and USD/CAD's relationship.
Deeply oversold GBP/CHF opened the week at 1.2791 and massive overbought USD/CAD at 1.2769 or 22 pips. USD/CAD and Correlations run +10 and not much assistance. Written Sunday was caution to CHF cross pairs.
USD/CAD eventually crossed above GBP/CHF and traveled to 1.2894 as GBP/CHF dropped to 1.2656 or 238 pips. At yesterday' s Fed, USD/CAD flew to 1.2796 and GBP/CHF to 1.2559 or 237 pips.
USD/CAD and GBP/CHF today hold a spread of 121 pips but now trades 51 pips. USD/CAD target as written Sunday is 1.2629 and USD/CAD achieved lows at 1.2674 and 45 pips to target with 2 trade days remaining.
Hold the 2nd lot from 1.2894 to 1.2674 runs +220 pips and +95 pips from 1.2769 or actual Short Anywhere as entry doesn't matter. Hold the 2nd lot to 1.2769 and exit then +125 pips and +95 pips from 1.2769 totals 220 pips.
USD/CAD achieves target either by GBP/CHF higher and crosses USD/CAD or deeply oversold GBP/CHF drops lower to day trade bottom today at 1.2559 and 1.2578. Either way GBP/CHF trades, USD/CAD target remains 1.2629.
The only other manner to track USD/CAD and to ensure target achievement is through GBP/CAD, the Carney Cross. GBP/CAD's vital point today for lower is 1.7399 and it broke lower to 1.7284.
USD/CAD all week was in a no lose trade situation and added to weekly profits was day trade gains. Monday's spike was beyond a god send as the spike achieved on Monday allowed shorts to trade all week.
To travel to even more technical depths to lose the crowd to USD/CAD's target, Canada's Repo rate or Corra is about to cross most vital Overnight Money Market Finance Rate. This means USD/CAD in days head could travel far lower than the 1.2629 target.
The least to USD/CAD target achievement concerns was and remains 99% to everything written and trades recommended as the whole trading world is so so wrong to a host of aspects and probably begins with charts. Light years of changes occurred since 2016.
GBP/CHF trades again massive oversold and long is the only strategy to target 1.2687 on a break of 1.2660.
GBP/USD as well trades massive oversold and matches GBP/JPY. GBP/USD to today's highs is located at 1.3698 and 1.3707 then short while GBP/JPY targets easily 150.59 and 150.49 on a break of 150.21.
For BOE, long is te only way forward for GBP. Doesn't matter what the BOE may say, long is the only trade.
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