USD deeply overbought and non USD currencies massive oversold and a wide divide between USD and Non. EUR/USD at 1.2000's and DXY at 89.00's was the reverse scenario as USD massive oversold Vs non-USD Richter scale overbought and a wide divide existed between both.
Trades went from Non-USD shorts and USD longs to today's, USD shorts and non-USD longs.
As written yesterday, USD/PLN achieved 3.8700 lows for +300 pips, USD/CAD achieved 1.2579, USD/DKK runs + 100 pips, USD/RON +100 pips, and USD/HRK +200 pips.
EM as USD contains a long way to drop as 2 and 300 pips is just the start to overall lower targets.
Weekly commentary, JPY cross pairs higher. JPY cross pairs traded higher and to maintain shorts on a short-only strategy. CHF/JPY break 119.60 then much lower to trade to 118.00's. JPY cross pair shots remain the gifts that keep on giving for toms of free money.
GBP/AUD for the week achieved 1.8561 lows from 1.8690's and 1.8680's. Today's supports to break are located at 1.8590 then 1.8533 and 1.8476. Maintain shorts at any price in the vicinity of 1.8700's to target 1.8590 then 1.8533.
Currently, no such concept as GBP/AUD 1.9000's existed. It's charlatan fantasy among many charlatan delusions. Impossible to take an overbought currency pair long or oversold short.
EUR/AUD is the better short trade. AUD/EUR informs today's EUR/AUD range is located from 1.6090 to 1.5926 which means long at 1.5926 and short at 1.6090.
AUD/EUR 30 ish pips forecast EUR/AUD 164. Go figure.
EUR/GBP broke 0.8612 and traded to 0.8572 for +40 pips while GBP/USD as written yesterday traded to mid 1.3700's. GBP/USD higher must break 1.3895 and USD/CAD lower to break 1.2495.
Until breaks are seen in GBP/USD or USD/CAD then higher GBP/USD and lower USD/CAD represents a correction.
2 minutes after the ECB speaks then the information becomes worthless to trades as the message will be located in the market. Tomorrow's ECB commentary isn't worth a flip yet nor is today's words.
EUR/USD 5 vital levels: 1.1736, 1.1752, 1.1767, 1.1826 and 1.1856. Short the highs and long the lows. Any price if seen above 1.1856 is a free money gift offered by Mr market. Never expected and rarely seen but it just is made available.
What we see today is a day trade, 50 pips and 100 if traders and the ECB are feeling lucky.
Trading currencies and other financial instruments carries a degree of loss and possible loss of entire investments. Please managed your own risks, stop loss, and margins requirements.