Currency market: GBP/NZD vs EUR/NZD and GBP/AUD vs EUR/AUD
|As written yesterday, GBP/AUD range traded from 1.8752 and directly to 1.8850. The problem to 1.8850 is the dangerous market scenario as overbought traveled to further overbought.
GBP/AUD range today is located from 1.8946 to 1.8754 as the bottom rises by 2 pips and top by 96 pips.
EUR/AUD held its range from 1.6097 to 1.5933, lows at 1.6027, and traded overbought to overbought. EUR/AUD range today is located from 1.6131 to 1.5966 as the top rises by 34 pips and the bottom rises by 33 pips.
The commonality to GBP/AUD and EUR/AUD is not only are both severely overbought and GBP/AUD is outperforming EUR/AUD but complementary wide range pairs GBP/NZD and EUR/NZD are also located in the overbought stratosphere. All 4 wide rangers decided to travel higher.
The better trades are GBP/NZD short Vs EUR/NZD and short GBP/AUD vs EUR/AUD. GBP/NZD targets 1.9788 while GBP/AUD targets 1.8637. All 4 wide ranger contain miles of downside.
The 3-week strategy to GBP/AUD was short from 1.8700's to target every trade lower for 100 pips. The current trade is about the 6th round of shorts in 3 weeks.
A target is always identified first then an entry. A target is never wrong because its mathematically correct but this current round of shorts, we got caught by a corresponding mathematical entry.
Problem trade remedy
Problem trade mode to missed entry contains 3 options. The first is to hold the trade to target, exit, and profit. The 2nd option is to add 1 lot and trade to entry for breakeven on the first lot. Add 1 lot means to hold to 1.8754, breakeven, and no losses. The 3rd option is hold 2 lots to target and double profits.
Never a loss in currency trading as a missed entry represents enormous opportunity especially when our weekly trades are 150 and 200 pips.
GBP/USD lower must break 1.3833 and today's bottom is located at 1.3807 and 1.3832.
USD/JPY sits oversold just above vital 109.40 and 1209.11. Any price today in upper 110.00's is best short to target 110.21.
EUR/USD is fairly normal as longs are located from 1.1798 or below at 1.1771 to target 1.1825 and 1.1838.
AUD/NZD
Recall to weekly commentary oversold AUD/NZD and so far weekly range traded from 1.0630 to 1.0603 or 73 pips. Entry as recommended from 1.0559 then +45 pips and target at 1.0632 and 1.0648. See also why AUD/NZD is a horrible currency pair. For 3 days and 73 pips is hardly worth the trouble.
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