Currency market: FX next week – GDP, USD/CAD, CAD/MXN and imports

GDP today last 3.2 and 2.6 consensus. While GDP averages may not trade overbought or oversold. at 3.2 and 2.6 remains far to high an overall price as 2.6 is located between the 10 and 11 year averages from 2.29 to 2.37.

The Atlanta Fed Now offers 3.5. The 3.5 is located at averages 3 year, 6 and 7. The 7 year average is perfect to the Atlanta Fed's forecast. But still to high an overall price.

GDP's proper location and any economic release is between the 1 - 5 year average. The 3.2 and 2.6 is today located above the 10 and 11 year averages and signifies to high a price.

The Atlanta Fed forecasts GDP by updates to each economic release then predicts GDP by using weather as a forecast tool. The weather aspects verifies my claim over years to purchase weather books to learn and understand a market price. Weather is statistics in action and the older the books the better, less expensive and more examples to Statistics.

In market trading is spoken ranges. In Weather books is taught the breakdown to ranges as Terciles, Quintiles, Quartiles, Deciles for 3, 4, 5 and 10. The market price is now scaled from 3 to 10 but overall must scale is 1 to 10.

Easier than the Atlanta Fed is obtain the GDP data from the RBNZ. The RBNZ will post today's GDP data tomorrow so traders are prepared for the next GDP release. AS well GDP is the insight to all economic releases.

The data allows for negative GDP forecasts as dobe in July.

Next week

AUD/USD achieved target at 0.7082 as written January 9. Ranges are located at 0.6831,  0.6986 to 0.7135.

EUR/USD ranges 1.0579 - 1.0892 or 313 pips and 1.0892 to 1.1127. The range from 1.0579 to 1.0892 is slowly compressing as the range lost about 40 pips this week.

EUR/AUD big break for higher is located at 1.5446 and oversold begins at 1.6267.

GBP/AUD as the better trade to EUR/AUD remains deeply oversold and targets 1.7546.

GBP/AUD trade strategy is the same as 2 weeks ago to long any price at 1.7300's and 1.7400's. Each trade long should contain a 50 pip profit and 3 and 4 rounds of longs exist.

GBP/USD trades 1.2096 to 1.2551. GBP/USD must begin a more concerted  process to break 1.2551 or GBP/USD drops to low 1.2300's and high 1.2200's.

GBP/JPY big break at 156.29 moved higher by 16 pips in 2 weeks. GBP/JPY ranges from 156.29 to 161.78.

EUR/JPY lower on a break at 141.46.

USD/JPY trades oversold and targets higher at 130.03. Any price over 130.03 is a bonus to shorts.

USD/CAD, CAD/MXN and imports

USD/CAD trades in a 300 pips range from 1.3300's to 1.3600's and failes to trade alongside DXY.

USD/CAD is driven by Import Prices to the United States. Imports hit a 2020 April low at -6.8. USD/CAD followed the continuous import price drop from -1.3 in February 2020. Then began a slow rise.

CAD/MXN skyrocketed from February lows at 13.97 to 18.17 highs in April. Then began the slow descent.

Import prices trade dead center from March 2022 highs at 13.0 to -6.8 at April's lows. Nex Import price release is scheduled for February 17.

USD/CAD big break is located at 1.3412 and CAD/MXN at 14.40.