EUR/USD Levels, Ranges, Targets
|Friends, followers and interested parties: don't look for these posts to come often anymore as its not worth the trouble to bother in what I call a sea of disaster. I don't read nor recommend another to follow however I recently stumbled upon Kathleen Brooks and I highly recommend her writings for not only deep depth of coverage in topics but she employs analytical skills rather than the rear view mirror and worthless description used by most. She answers and throws heart and soul into what does it mean and its actionable rather than here's what happened. Here;s what happened blah doesn't earn money. Stay away from daily Trump haters as psychological imbalances can't find market rationality to earn money. Extreme caution to the wanna be seen and heard crowd. Correct trading requires homework, this crowd doesn't do homework.
I'll post from time to time on my blog and I might post Friday's GDP as I do it traditionally for our small group of traders. Don't expect much in market movement terms because all fundamental releases are within 1% of each other. What is 1% to a decimal point, nada, Zed, nothing. If economies can ever achieve 3 and 4% in GDP and in all economic announcements then we enter again the 2003 to 2006 period of terrific volatility. A miss on 3 and 4% would double the volatility than a miss today.
Trump has potential to bring us to this point as well as Theresa May. Sadly for Le Pen whose message and intentions are correct and in line with the possible Wave elections of Trump and May but she's untrustworthy in the Russia alliance. Le Pen has ability to wake up the comatose European crowd to the political, economic and military threat knocking on their back door. Russia's 50 year dream was always Western Europe. The outside worry is Le Pen could win
Okay Overbought EUR/USD from averages 5 to 200 day. The French liftoff was perfect from 1.0716 and jumped correctly at 200 pips. 1.0716 remains the evaluation point and only a break lower at 1.0790, 1.0733 then 1.0716 would see shorts gain traction. Big break points above are located at today's 1.0924 and 1.0983 while range points are found at 1.1081, 1.1099 then 1.1178. The top channel and possible longer range target is located at 1.1313 and 1.1385.
Viewd from the German 2 year yield at 0.313, massive resistance is found at today's 0.314 and 0.316. Only a break here takes EUR higher while a stiff bottom is located at 0.311. The US 2 year from 1.254 sees a bottom at 1.250 and must break for USD higher, EUR lower at 1.256. Not much room for EUR movement today.
We are looking at longs from 1.0802 upon a break of 1.0813 and 1.0814. At 1.0813 i located the 253 day average. Shorts points today are located at 1.0884 if we can catch it.
Overall for EUR, its far overbought yet I'm skeptical of a Le Pen win and potential for EUR to drop significantly.
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