EUR/USD targets 1.2150, DXY 89.59 to 90.51

Brian Twomey Brian's Investment

From the weekly commentary, EUR/USD begins the week fairly neutral against a big break at 1.2240. EUR/USD traded to 1.2254 then dropped to 91 pips to 1.2163 and bounced again. If traders followed on the social sites then seen is 2nd round shorts are active from 1.2215 to target 1.2150.

Exists today on the low side are 1.2152 and 1.2131. EUR/USD shorts today must break 1.2161, 1,2142, and 1.2144 to trade 1.2131 and 1.2129. Then long to target 1.2172. Then short again to target 1.2141. Then short again to target 1.2121.

Between weekly and daily trades, 18 currency pairs trade continuously from Sunday to Friday.

Overall, EUR/USD must break 1.2111 to target much lower levels.

Ranges remain compressed against massively slow price speeds and most dead since EUR introduction in 1998. No restoration insight to expanded ranges and increased volatility.

The problem is not exchange rates but rather underlying interest rates as interest rates from central bank to central bank married to the point no difference exist from central bank to central bank. Interest rate markets must trade correctly and expand ranges in order for exchange rate ranges to inflate.

Fed Funds in the past week traded 10 points daily and those 10 points represent extreme lows to highs. Overall Fed Funds traded barely 10 points daily over the past month. Central banks are killing markets. if market leader Fed funds trade 10 points then Central bank interest rates won't exceed 10 points. The Fed calls the shots to traded markets.

Yet currencies are the only game in town as currency price ranges must exceed all financial instruments. If currency price ranges compress then all financial instruments trade in smaller ranges to include stock indices, commodities, Gold and Silver, and all metals.

DXY from 90.05 at today's close and 90.04 yesterday, DXY never moved. Yesterday DXY traded 89.86 to 90.24 or 38 pips. Weekly, DXY traded 89.66 to 90.24 or 58 pips. Recall 90.24 is the exact point at the 10-year monthly average and the point to break and move higher.

No changes to DXY from yesterday as bottoms are located at 89.59 and extreme tops at 90.51 on a break of 90.24.

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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