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Currency market: Inflation, currencies, Dow, Nat gas

As written Sunday, GBP/JPY broke below 164.75 and traded to 163.00's. Actually traded to low 162.00's. All received extra pips.

XAU/USD targets  1888.53 and 1889.20, while XAU/EUR targets higher at 1751.09 and 1798.17.

Targets achieved at XAU/USD Highs 1881, XAU/EUR Highs 1791

USD/BRL Next target is located at 5.04 easily. Highs 5.12 from 4.98. Easy trade.

Silver as XAG/EUR or XAG/USD barely trades 1 full point per day. Same as Natural gas.

Nat Gas trade for today

Short 9.0538 to target 8.923. Or Short 9.0538 to target 8.2693. Long 8.2693 to target 8.40. For nat gas, 2 other trade methods exist to profit but my posts as is will earn great profits. The key to profits is to trade not one way but multiple longs and shorts for profits 1 and 3 X the range. Same for Silver priced in any currency.

Yesterday was posted Corn on Linked In and +32 points for longs and shorts. Ask this question. What do I know about Corn. Nothing but nothing is required to know in order to profit from Corn trades. Longs and shorts achieved targets. Longs and shorts on any given day will achieve targets.

DXY achieved massive overbought status at 105.00's yesterday. Target today is located at 104.52 and 104.37 for the week. DXY 105.00 remains overbought.

Dow Jones

Broke below 31723.94 to trade 30516.74. Dow Jones traded 776 points yesterday. Not only a normal move but Dow traded barely 3/4 of its normal weekly range. The concept to stock market meltdown is hype and overblown. Today's Dow target is located at 31364.67.

SOFR

Yesterday traded 0.60 to 0.95. If 095 breaks then target becomes 1.03. The range becomes 0.78 to 1.03.

Currencies

Our currency pairs today are located in tough positions. EUR/USD higher must break 1.0461 and 1.0462 to target 1.0548. May not happen until after 10:00 am. AUD/USD higher must break 0.6977 and 0.6985. NZD/USD 06297 and 0.6305. GBP/USD 1.2213.

USD/CAD's 5 year average is now 1.2970. EUR/CAD traded yesterday barely 65 pips.

EUR/AUD adds to interersting locations as a wide range currency pair. Shorts today are located at 1.5091while current EUR/AUD trades 1.5105. Targets are located at 1.5055 easily and 1.4905.

As anchor pairs USD Vs Non USD appear stick for this day, wide range pairs is the best trade method. Wide rangers include EUR/NZD, GBP/NZD, GBP/AUD and EUR/AUD. EUR/NZD and EUR/AUD are best of the lot.

Inflation

Trump in 4 years spent 2134 billions as M2. Biden in almost 2 years spent 2134 billions. I view Inflation as an economic price problem but not found within the money supply. The central banks answer however is to treat Inflation as a financial problem rather than a price dilemma. The financial answer is raise interest rates and at a time when economic risk is at stake.

Inflation's price problem is located in the supply chains or ability to bring goods to market and Oil as required to manufacture goods used in everyday products.

Until the supply chain and oil dilemma is solved, raising interest rates won't cure the Inflation price problem. Grocery stores for food for example are on rations for many products. Many stores lack ample food supplies. How would raising interest rates solve the food dilemma.

Democrats own the Longshoreman's unions since the 1930's and passage of the Wagner Act in 1935. With one phone call, democrats could end the supply chain problem today to release required supplies stranded off shore on tankers. 

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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