Currency market: GBP/JPY, USD/CAD, GBP/CHF

Brian Twomey Brian's Investment

USD/CAD wins the week long currency market battle for USD supremacy. Written yesterday USD/CAD support at 1.2881. The USD/JPY and USD/CAD roles reverse as USD/JPY supports are located at 129.08, 128.90, and 128.66. Previously USD/CAD 1.2908, 1.2890 and 1.2866.

Currency pair role reversals are most specifically seen in exchange rate cross overs and mathematically by Simple Regression Lines. USD/JPY for example may sit on the bottom of a Regression line and EUR/USD on top but eventually roles reverse as EUR/USD will eventually sit on the bottom and USD/JPY on top.

Bottoms and tops can only travel so far until the roles begin reversals. Found in the nature of the exchange rate relationships but seen early in Regression Lines to allow preparation for long term trades.

As written yesterday, USD/CAD bottoms 1.2929 and traded to 1.2923. Specifically, 1.2985 broke below and traded 50 pips lower. USD/JPY bottom at 129.57 traded to 129.43.

SPX achieved yesterday's reported bottom at 3930, WTI achieved tops at 105.45, bottoms at 98.66 and GBP/JPY as written Sunday broke below 159.95 to 158.81 for 100 quick pips. GBP/JPY now trades 157.43.

Unique to Brian Twomey and trading is consistency to targets and profits as I maintained both for 10+ years. Targets and profits are yesterday's news as today's money interests to markets are more concerned with profits from extra ciricular activities.

Trading correctly and market knowledge is the least concern yet should've maintained priority to bring in more views and revenues. Show a sign of sophistication on the other popular website is rejected.

The concept applies to hedge funds, institutions and currency analysts as much as the retail side of trading. Many hedge funds are out there struggling for profits as much as retail traders and currency analysts. All are no different. The word analyst is associated to expert but none are experts. The currency brokers are as much to blame in the consistent profit scenario. Nobody cares anymore for a leg up to traders.

Next stop for WTI above is 108, and 4080 for SPX 500. GBP/JPY bottoms today are done at 156.98. Good shot for longs to return to 158.18 easily.

GBP/CHF bottoms today right at 1.2129 then will travel back near 1.2221.

Next week

Best pairs next week to trade are AUD/USD and GBP/USD as middle currencies. Both are moving daily at 130 ish pips per day and outperforming EUR/USD and NZD/USD. The week's winner is GBP/JPY and GBP/JPY will again lead the JPY cross pair pack next week.

AUD/USD higher then best trades are EUR/AUD and GBP/AUD shorts. Watch EUR/AUD 1.5082. GBP/USD positive correlations to cross pairs will maintain its positive status for easily the next few weeks.

Overall currency markets are back to normal as next week returns to normal movements.

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 tests nine-day EMA support near 1.1850

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1870 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming steady momentum. RSI has eased but remains above 50, indicating momentum remains constructive for the bulls.

GBP/USD consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

Gold: Will US CPI data trigger a range breakout?

Gold retakes $5,000 early Friday amid a turnaround from weekly lows as US CPI data loom. The US Dollar consolidates weekly losses as AI concerns-driven risk-off mood stalls downside. Technically, Gold appears primed for a big range breakout, with risks skewed toward a bullish break.

Bitcoin, Ethereum and Ripple stay weak as bearish momentum persists

Bitcoin, Ethereum and Ripple remain under pressure, extending losses of over 5%, 6% and 4%, respectively, so far this week. BTC trades below $67,000 while ETH and XRP correct after facing rejection around key levels. With bearish momentum persisting and prices staying weak, the top three cryptocurrencies continue to show no clear signs of a sustained recovery.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Aster Price Forecast: Demand sparks on Binance Wallet partnership for on-chain perpetuals

Aster is up roughly 9% so far on Thursday, hinting at the breakout of a crucial resistance level. Aster partners up with Binance wallet for the second season of the on-chain perpetuals challenge.