EUR, GBP, Lead and Lag: Levels, Ranges, Targets

Brian Twomey Brian's Investment

In the leading and lagging category to currency pairs, deceptions exists. On paper, AUD/USD appears as a superstar for its wider ranges. AUD is not a king therefore always take an NZD/USD trade over AUD despite NZD's shorter ranges. NZD is allowed to move, AUD is severely contained. NZD will always earn profit, AUD trades will struggle.

EUR/JPY ranges are much shorter than GBP/JPY yet EUR/JPY is the far better trade and GBP/JPY should be relegated to a Speculative trade. On paper, GBP/JPY appears as the superstar because of its wider ranges but EUR/JPY targets and market movements beat GBP/JPY by miles.

On paper GBP/USD appears as a superstar, wrong again as EUR/USD despite shorter ranges is the far better trade and its allowed wider movements. Some pairs in the leading and lagging category perform far better than others. EUR beats GBP easily. EUR/JPY beats GBP/JPY. EUR cross pairs beat GBP cross pairs. GBP lost its name as a market oriented pair, EUR didn't lose its market status.

USD/CAD on paper and trade deserves its special attention as superstar.USD/CAD is the same pair as EUR/USD only opposite. USD/JPY beats USD/CHF easily but USD/CAD beats both as CAD is a market oriented pair and its allowed to move whereas CHF and JPY are contained currencies.

Market oriented is defined by GBP. Banks and certain money people are afforded special access to GBP information and data. These are pros and take the perfect trades. Everybody else is denied access and this is done on purpose. By the time everybody else gains access, the trades are over as GBP hit targets and fulfilled its intended Statistical price path. The pros earned money, everybody else is trying as the pros maybe left a few pips on the table. 3 hours later, access is still denied. This means the everybody else crowd is still trying to obtain data.

So all don't fall into the laughable everybody else crowd and to understand the name of this game under new market structures is ranges, we don;'t need to Gain Access. My question is how far will the BOE go to lock out the everybody else crowd. Today is the worst day I've ever seen in 2 years of daily BOE data views.

Yesterday afternoon, GBP ranges and necessary information was figured and factored ahead for the next 24 hour period.

GBP/USD overall range today was 1.3260 to 1.3183. Overall ranges yesterday afternoon reported, 1.3260 to 1.3152 but 1.3152 smacks dead against the vital break point at 1.3151 therefore exclude 1.3151. What's 1.3260 is dead set stop at USD 1.3260. USD stopped GBP rather than GBP stopped on its own.

Here's the data from yesterday. 1.3260, 1.3238, 1.3235, 1.3217, 1.3215. 1.3173 and 1.3170. Then comes break points at 1.3152, 1.3151. Buy drops was the strategy. Maybe I will post 24 hour ahead trades so may view but also to laugh at the everybody else crowd. Never fall prey to the crowd.

EUR/USD. Overall break points, 1.2031, 1.1797 and 1.1651. Higher today must break 1.1831 to target the brick wall at 1.1860 and 1.1858 upon a break of 1.1837. Below 1.1797, 1.1787 and 1.1778 provides supports. A break lower targets 1.1763 and 1.1749.

EUR/JPY. Above, EUR/JPY must break 133.20 to target 133.55. Below watch 132.62 then 132.47 and 132.38.

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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