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Currency markets next week

A written, USD/CAD is best  Currency short to target low 1.2600's. Highs achieved 1.2763 and lows 1.2605 or +158 pips. At least 158 pips available as stated, on entry anywhere. Know target then entry is a breeze.
Yesterday's EUR/USD achieved target at 1.1836 and traded 1.1838. Missed entry though as stated 1.1784 never traded. However, know target then entry is a breeze.

CHF/JPY as written Sunday shorts below 119.91 to target 119.48. Target achieved and lows traded to 119.44 and + 43 pips to 119.48.

Not reported was profits on 9 NZD/EM trades and as stated Sunday, each trade target was 2 to 300 pips or easily 1800 pips at the 200 pip targets.

The 10 year yield traded 9 weekly points yet USD/JPY profit 125 pips on 85 weekly pip range. Yield are a separate entity than USD/JPY and matters none to USD/JPY moves, targets and entries. Yields are a separate entity to interest rates and in a class by themselves.

Interest rates predict yields, currencies and all financial instruments including stock markets and commodities. Using yields to predict currencies employs the market to forecast the market. This is not the proper manner as other more profitable ways exist.

GBP/CHF as usual over the last 5 weeks traded well at 132 weekly pips and beat GBP/USD at 161 pips.

GBP/NZD as 1st position traded 158 pips vs 140pips for EUR/NZD and EUR/NZD was correct in 6th position.

AUDUSD at 6th place last week was correct as AUD  traded 124 pips. AUD/USD was actually in neutral positions all week and not trade able.

NZD/USD was correct as 1st position short and the easiest trade of the week to achieve 81 weekly pips. NZD/USD will again earn 1st position shorts for next week and the easiest trade for next week. AUD will again remain a distant middle to last position.

NZD/USD last week closed 0.7146 and today trades 0.7150. Same trade will run for next week with a target at least 61 pips compared to this week's 81.

NZD/USD  81 pips is matched by DXY weekly pips at 82. NZD/USD is the most closely aligned currency to DXY and USD interest rates. No other currency compares. USD and NZD both contain 253 trade days per year and explain the 253 day average as the best marker for yearly trade days. EUR/USD trades 265 trade days as the highest trade day currency.

USD/JPY never trade far from the 109.89 target. Lows achieved 109.54 or 30 pips from target. We leave the petty trades alone.

USD/JPY next week will trade almost the exact same trade as shorts from 110.38 and 110.45 targets 109.95 without much trouble. USD/JPY overall is a dead currency and making zero weekly progress  to a significant break point and far better weekly moves.

USD/CAD and CAD/CHF so far looks long for next week however lower for both would assist the long story. CAD/JPY is the off kilter outlier to the CAD story and the same as this week.

GBP/USD and EUR/USD aligns as short for next week and both matches perfectly to NZD/USD shorts.

GBP/CAD will lead the GBP charge for next week while GBP/NZD looks  like a repeat performance as the same trade next week as this week.

GBP/AUD and EUR/AUD both threaten to break lower. Work for trades is completed on the weekends but this is the view as it stands this minute. 

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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