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Currency market: EUR/USD vs US Dollar Index – 300 and 600 pip ranges

DXY began January 2022 by breaks higher at the 95.00 and 96.00 averages at 5 an 50 year then traveled 1900 pips while EUR/USD broke the 5 year average at 1.0800's and eventually 50 year.

EUR/USD traded 1300 pips to 95.00's Vs 1900 for DXY or a difference of 600 pips. DXY broke January while EUR/USD broke below 1.0800's in April or a difference of 3 months.

EUR/USD achieved 95.00's in 5 months while DXY traded to 114.00's in 8 months or a difference of 3 months.

EUR/USD 5 year average is located at 1.1340 and the 50 year within the vicinity.

EUR/USD currently trade a 240 pips range from 1.0885 - 1.1125 or a 298 pip range from 1.0587 to 1.0885.

AUD/USD trades 0.6830 to 0.6980 or 150 pips and 0.6980 to 0.7133 or 153 pips. AUD trades 1/2 to EUR/USD ranges but 303 pips from 0.7133 - 0.6830 or the exact same as EUR/USD.

DXY monthly averages posted September from 1 year to 50 line up as follows:

1 Year 99.67.

5Y = 95.69.

10Y =92.83.

15Y =88.16.

20Y = 88.41.

25= 92.02.

30Y = 91.64.

35Y = 91.62.

40Y = 95.75.

45Y = 95.81.

50Y = 96.43.

From 99 to 96.00 or 300 pips, 95 to 92 or 300 pips, 91 to 88.00 or 300 pips. All averages are valued at 1100 pips or 1/2 at 550 or 275 pip intervals.

SPX from December 14 traded a 240 point range from 3774.69 to 3534.40. SPX broke above 3774 to trade highs at 4039.16 or 264 pips.

EUR/USD range on a 5 year average is 600 pips and 900 on a 10 year average or a difference of 300 pips.

All trading life regardless to any financial instrument begins at 3 and 6 and 300 and 600 to signify ranges and targets.

EUR/USD target reported in December is 1.1001 between a 300 pip range at 1.0885 to 1.1100;s but EUR/USD was forced to break the first 300 pip range from 1.0500's to 1.0800's for a 600 total or 300 X 2 ranges.

Ranges at 3 and 600 derived from the 3 month and 6 month interest rate first introduced in the 1930's. Most vital is the 3 month as the first constant to markets. The 3 month rate held as a constant in the 1940's as the Fed began interest rate control to the 3 month rate so inflation would trade beneath.

As markets became settled in the modern day, 300 and 600 ranges became a main component to trade markets and view prices on a long term basis. The common theme to prior long term trades posted over many past years is 600 pip targets. The recent JPY trades all achieved 700 pips or a 100 pip bonus. AUD/USD target at 0.7086 is a 300 pip trade from 0.6700's.

On a daily trade basis, prices trade 3 and 6 intervals to replicate daily interest rate moves.

The concept to 3 and 600 will remain a constant to markets for years and possibly decades in the future. 

Author

Brian Twomey

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.

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