Currency market: USD/CAD, EUR/USD, AUD/USD

Brian Twomey Brian's Investment

Yesterday's USD/CAD as written achieved 1.2621 in 9 hours for +71 pips from 1.2695. USD/CAD actually traded to 1.2619 and note both odd number targets. Currency markets remain trading odd numbers which means target trading for most pairs will contain an odd number. Entries are open to even or odd for most pairs however with caution as it depends on which days and times of entry and target.

USD/CAD actual 5 day average or 200 hour MA today is located at 1.2642. Yesterday's USD/CAD 5 day average was located at 1.2652. Tuesday's 5 day average was 1.2650 and Monday 1.2653. Yesterday's target was 1.2621.

USD/CAD's target was 1.2621 on a break of 1.2641. See today's exact 5 day average at 1.2642. But that's today and not yesterday. The most a day trade could be off kilter is 1 to 2 pips due to the 2 pip differential between interest rates between Canada and the FED.

But this is the same scenario for all nation's interest rates. The same for example between the RBA and RBNZ rates. By eyeball view, the interest rate numbers look far different and extremely far apart but in day trade actuality, the numbers are as close as kissing cousins.

So 72 quick USD/CAD pips with exact target and entries. CAD/CHF achieved a quick 69 pips in 2 trades Monday and CAD/JPY. 95 pips in 2 trades or 236 pips total on 3 currency pairs and 5 trades. Trades are few and run continuous all week for all 18 currency pairs not to include day trades.

USD/CAD remains severely overbought, CAD/JPY matches USD/CAD at oversold but CAD/CHF turned neutral and at vital break at 0.7297. CAD/CHF was firmly in the CAD/JPY universae at week's start but USD/JPY sent CAD/JPY oversold and CAD/CHF no longer holds a trade nor direction.

For USD/CAD shorts, don't push your luck past 1.2669 entry.

EUR/USD's 5 day average today is located at 1.1810 and vital point above for higher prices at 1.1861. Day trade tops today at 1.1856 and 1.1864 reveals 1.1861 holds and short is the way as EUR/USD could trade easily to 1.1798 and 1.1779.

USD/JPY continued the fall to 109.10 lows. USD/JPY will have a tough time crossing vital 109.66 which means JPY cross pairs sit at oversold against a fairly neutral USD/JPY.

AUD/USD has held as good trades over the last 3 weeks. Long is the way at 0.7309, 0.7303. Any price below is a bonus to longs. Look for target at 0.7339. The overall target is 0.7354. AUD/USD is a far better trade than current NZD/USD.

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.

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