Currency market: USD/CAD targets and FX markets next week
|USD/CAD target as written Sunday at 1.2629 completed at 1.2632 from 1.2769 and Short Anywhere then 1.2894. As written to the 4th leg of the trade, long 1.2629 to target 1.2661 also completed.
Hold the trade from 1.2894 or thereabouts to 1.2632 target achieved +262 pips. From 1.2894 to 1.2769 then +125 pips. From 1.2769 to 1.2632 then +137 pips.
4th Leg.
Long 1.2629 to target 1.2661 then +32 pips.
USD/CAD's spike on Monday provided a rare yet huge bonus opportunity for many extra pips profit not originally intended, especially as the jump occurred on Monday. From Monday to Thursday's target completion, trades operated on pure profit all week.
To exclude Monday's spike and knowing the target on Sunday, the normal weekly trade would've traded from 1.2769 to 1.2629 in 4 days. In 4 days, the Fed, BOJ and BOE met, plus many news announcements and whatever market events.
Under normal circumstances to weekly trades, USD/CAD for example, had 4 days not to watch markets nor care to any market events as targets are written in mathematical stone. Day trades are quite different.
GBP day trades
GBP/USD yesterday achieved 1.3707, GBP/CHF 1.2687 and GBP/JPY 150.59.
Next Week.
USD/JPY and JPY Cross pairs
USD/JPY begins next week severely overbought from Sunday's reported neutral position. USD/CHF begins massive overbought while USD/CAD at neutral will hold the USD trifecta position in neutral position and remain the oddball currency among the 3 most vital USD currencies.
JPY cross pairs began this week severely oversold, all traded higher. EUR/JPY, GBP/JPY, CHF/JPY and AUD/JPY trade in crucial do or die situations as all may trade easily higher or lower. Fairly neutral as all currently stand.
NZD/JPY as odd ball trades at severe overbought. Recall last week. NZD/JPY was last on the JPY cross pair rankings and no hurry for a trade.
CAD/JPY sits oversold yet at its crucial break point while USD/CAD trades neutral.
EUR/USD
EUR/USD remains oversold and targets upper 1.1700's and lower 1.1800's easily while EUR/CHF sits at vital high/low point. EUR/CAD trades in its usual monthly position between 1.4911, 1.4984 and 1.4553. Nothing special to EUR/AUD except its usual short highs.
EUR/NZD currently sits oversold and a pair to watch for next week while EUR/GBP contains as usual no excitement and no hurry to trade.
NZD and AUD
Lowest exchange rate NZD/USD, NZD/CAD and NZD/CHF also sits at vital inflection points. Same story for AUD except AUD/CAD at oversold and may decide the determining factor to drive AUD pairs next week.
GBP
GBP currencies so far appears as next week's winning trades as oversold GBP/USD could easily assist GBP/CHF and GBP/JPY higher. Oversold GBP/NZD as well assists to GBP longs while GBP/AUD matches EUR/AUD short high strategies.
From current prices, currency markets next week appears extraordinary neutral with focus on vital break points unless today brings moves to determine better trades. GBP/USD lower would solidify GBP currencies as the main trades next week and EUR/USD long drops as usual routine for the past few months. USD/JPY sits on the radar due to current overbought but normally traded as a day trade.
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