Weekly Trades: EUR/USD, EUR/JPY, GBP/CAD
|Last week informed GBP pairs were low and depressed, especially against its overbought counterparts AUD, NZD and EUR and had no choice except to rise.
GBP/USD did and rose 277 pips and we profited 212 pips on 277.
This week GBP/USD and GBP/JPY retain horrible weekly positions but this includes GBP/USD's main counterpart, USD/CAD. The spead at 1100 pips leaves GBP/CAD in questionable limbo land to direction. But GBP/CAD as most neutral of all Currency pairs due to its position as middle currency pair to total opposites USD/CAD Vs GBP/USD is performing its natural neutral function. Only when the spread decreases will GBP/CAD become active again as a regular viable weekly trade.
EUR/CAD will become the star performer this week while GBP/CAD will underperform.
Despite terrible positions to GBP/USD and GBP/JPY, its low, depressed and deeply oversold GBP/CHF to assist in GBP longs as the rear guard holds GBP/USD and GBP/JPY supports.
Wide rangers EUR/NZD and GBP/NZD remain low and depressed and partly due to overbought NZD/USD. Same scenario for GBP/AUD and EUR/AUD as AUD/USD retains its severe overbought position over last weeks. AUD/USD at 0.6900's is fast approaching its long term target at 0.7192 which means not much remains to topside AUD/USD. Longer term, AUD/USD at 0.6600's is easily achievable.
EUR/USD and EUR pairs continue to contain terrific price paths and favored trades for about 3 weeks running. No difference this week. EUR/JPY at 120.00's faces massive resistance at 122.00's and EUR/USD at 1.1300's achieves its long term target. EUR/USD longer term could easily trade to 1.0900's.
JPY cross pairs all overbought including CAD/JPY but not to include GBP/JPY.
EUR/CHF since January retains the status as worst trade able currency pair as no viable movements exist. Same for EUR/GBP. Better trades are GBP/CHF, NZD/CHF and AUD/CHF.
USD/CAD is clearly the best trade vs CAD/CHF and CAD/JPY while CAD/JPY remains the better trade against CAD/CHF.
This week's EUR/USD trade hardly changed from last week and we'll run it again. We'll run with EUR/JPY and GBP/CAD.
Weekly Trades
EUR/USD
Short 1.1288 and 1.1312 to target 1.1166.
Short below 1.1141 to target 1.1043.
Long 1.1043 to target 1.1092.
Long 1.1166 to target 1.1231.
EUR/JPY
Short 121.05 and 121.23 to target 120.25.
Short below 119.98 to target 119.05..
Long 119.05 to target 119.60.
Long 120.25 to target 120.69.
GBP/CAD
Long 1.6882 and 1.6867 to target 1.7012.
Long above 1.7030 to target 1.7162.
Short 1.7162 to target 1.7094.
Short 1.7012 to target 1.6946.
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