Currency market: EUR/USD v DXY and USD/JPY

Brian Twomey Brian's Investment

Total 572 articles accounted for 2016 to 2019. Today's 1000 + trade articles adds to 2007 when writing began. Article count must be in the multiple 1000's and we consistently delivered trades and profits.

From btwomey.com. Jackson Hole 2017, EUR/USD rose for the day at 169 pips Vs Last week's Jackson Hole at 143 pips. DXY in 2017 dropped 103 pips Vs last week at 129 pips. No changes in 5 years.

In 2017, DXY traded 92.42 and EUR/USD at `1.1900's or a spread at 2600 pips Vs today's spread at 800 ish pips.

The answer is not in the spreads but the averages. EUR/USD trades 1400 pips from the 5 year average at 1.1471 and deeply oversold from the 50 day average at 1.0137 to the 5000 day averages in 1999. EUR/USD 5 year average in 2017 was 1.2000's.

USD/JPY trades massively overbought from the 10 day average at 137.33 to the 5000 day averages. USD/JPY trades severely overbought from the 5, 10 and 15 year averages at 111.00, 109.00's and 102.00's. The 5 year average in 2017 was at 106.00's.

DXY 5 year average is located about 1200 pips from current 108.00 at 96.00's.

The same 1200 pips is seen from current GBP/USD Vs USD/CAD.

The current EUR/USD Vs DXY and non USD currencies trades at wide extremes and must compress. The 5 year averages are moving at roughly 100 pips per year.

Top ranked AUD/JPY was the winner this week with yesterday's 154 pip drop and beat all JPY cross pairs.

EUR/USD 1.0072 traded to 1.0053 highs from 0.9914 lows. EUR/USD requires a weekly close above 0.9989 to consider a trend higher in focus. Target would then become 1.0133. The current driver at 1.0276 would then travel higher to allow EUR/USD to rise.

Below 0.9989 then EUR/USD contains ability to trade to a lower degree of oversold.

As mentioned in the weekly, EUR/USD cross pairs would outperform and this was the case yesterday.

Best trades for this day is EUR/AUD, EUR/NZD, EUR/CAD, GBP/USD and USD/CAD.

Author

Brian Twomey

Brian's Investment

Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.