EUR/USD, USD/CAD, GBP/JPY and political system
|EUR/USD remains at 1.2201 highs and 16 hours later the lows at 1..2163 and 2 pips below the open at 1.2165. The weekly trade holds as follows: short 1.2214 and 1.2224 is located at 1.2134.
EUR/USD big decision from 1.2134 is either break 1.2114 to travel lower or trades higher to 1.2174.
EUR/USD day trade today again contains 5 vital numbers: 1.2119, 1.2124, 1.2141, 1.2210 and 1.2241. The topside changes by 1 pip and bottom by 3 pips since yesterday and essentially no change.
EUR/USD traded dead this week however 2 days remain until Friday. The weekly trade may or may not materialize but that's why 18 currency pairs trade every week and day trades to profit extra pips.
While EUR/USD traded dead, USD/CAD and EUR/USD exact opposite has been on the move. From the weekly open at 1.2068, USD/CAD traded 1.2057 to 1.2117 highs or 60 pips in 72 continuous hours of trading. EUR /USD traded 1.2144 to 1.2201 or 57 pips.
USD/CAD's weekly target remains at 1.2201 on a break of 1.2179, 1.2184 and 1.2199 however no entry exists as entry missed by 36 pips. No problem here as we go short at 1.2201 to target 1.2061 and 1.2051.
USD/CAD day trade only 5 vital numbers for today: 1.2045, 1.2050, 1.2063, 1.2136 and 1.2167.
A higher or lower USD/CAD translates to a higher or lower GBP/JPY due to negative and opposite correlations and a fairly permanent condition for the GBP/JPY and USD/CAD relationship.
GBP/JPY 5 vital numbers today as follows: 154.17, 154.23, 154.55, 155.34 and 155.73.
Noted for Gold as posted May 26, short strategies only. Gold achieved lows so far at 1855 from 1918 highs or 63 points. EUR/GBP in the same 7 day period traded 0.8644 to 0.8565 or 79 pips.
Economics vs Politics
While lazer beam focus on economics, I suggest the political system and policies serves as more sound forward guidance. Clinton 1990 manipulations of the 1978 Community Reinvestment Act guaranteed a house and market crash in 2008 by forced lending to potential home owners without a means to repay.
History dates market crashes and massive sell offs to Railroads in the 1800's by government Railroad loan guarantees and led to government intervention, stock manipulations, bribery to political representatives and overbudgets to extremes.
Democrats now target companies not practicing social justice to haul in front of Congress. Democrats will seek control of these companies with a larger goal toi nationalize all major companies and operate under government and harsh government rules. Yesterday was Mattel in front of Congress. More will come for ridicule, destruction and forced donations to the Democrat party. Its a stick up.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.