EUR/USD and G10: Levels, Ranges, Targets

Brian Twomey Brian's Investment

Rare day for AUD/USD to lead the charge lower on a break of 0.7907 especially when NZD/USD’s break point was 0.7225 and it still traded at 0.7300’s. Normally NZD is market leader and it brings down the non USD pairs in EUR and GBP. Overall trend change occurs short term in USD when USD/JPY breaks 110.72, USD/CHF 0.9567. USD/CAD as USD market leader broke its respective 1.2520 and now challenges 1.2641. Alternatively, GBP/USD must break 1.3714, EUR/USD 1.2132.

EUR/JPY’s break point at 134.29 is enough to bring down GBP/JPY at 151.81. Ultimate USD Pair and true commodity currency CAD/ZAR at 9.6327 remains below its break points at 10.01, 10.12 at the 5 year average and 10.40 at my special designed 100 day average.

Overall currency markets and majority of currency pairs are within 100 pips to a trend change where USD becomes dominant as buy drop strategies. GBP/USD and GBP/JPY will fall below its break lines together as GBP/USD must remain dominant correlations to GBP/JPY. The question exists to who will own EUR/JPY in Correlation terms, USD/JPY or EUR/USD.

In the larger dominant market period since the 2008 crash, DXY at 90.00 remains above its break a 78.00, EUR/USD remains below 1.2800’s, GBP/USD below 1.4700’s, USD/JPY remains above 98.96 and CAD/ZAR remains above 8.8555. Further, USD/CAD remains above 1.1200’s while wild card USD/CHF must break 0.9798. Only breaks of 10 year averages informs to a wholesale market period change therefore USD retains overall domination until breaks of 10 year averages are seen.

Last post informed USD 10 year yield was oversold and going higher, it did as mentioned. The 2 year was overbought and it finally dropped.

On the political front as mentioned many times, Trump must and is currently taking down the Deep State bureaucracy long entrenched over decades by the Democrats. This means take down of the top 15% of political appointees as 15% was declared by Nixon in 1972 alongside Management and Budget bureaucratic reforms. Well deserved Indicitments should be seen in the near future.

What explains Stock Markets is interest rate ranges covered daily. For USD, last Tuesday 34 pts, Wed 24, Thurs 28, Fri 25, then Monday and Tuesday at 27, Stock Markets lost ability to rise, they killed the ranges. Ranges since the drop retained its fairly normal 30 point intervals to allow Stock market stability and again factor its normal Fair Value.

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.