FX next week: Weekly and long term targets

Brian Twomey Brian's Investment

Since February and March as written, EUR/USD targets 1.1048 on a break of 1.0913. EUR/USD for yesterday's Fed day traded to 1.0911. As usual, the currency price brought us to the brink. Most important to 1.1048, EUR/USD bottomed in March at 1.0500's on a known target at 1.1048. Traders are running with +500 pips and much more to go.

EUR/USD's actual range from today's assessment is located at 1.0917 to 1.1125 then 1.1374 and new target at 1.1044. EUR/USD trades deeply overbought. Good short point for next week is located anywhere in the high 1.0900's. Bottoms remain at 1.0500's and 1.0400;s. Short term range is found at 1.0599 to 1.0917 and EUR/USD averages are rising and good sign to further moves higher.

Tuesday EUR/USD traded to 1.0788 while DXY achieved lows at 102.99. And this from the Sunday weekly, EUR/USD ranges this week from 1.0546 to 1.0783 while DXY trades from 1.0500 to 1.0272. EUR/USD achieved a top at the same time DXY traded to lows as forecasted.

EUR/USD Vs EUR/AUD correlations now run +86% from 75% last week. From Sunday, maximum top at +78% and +87%. Correlations next could push a bit higher to maximum Correlation tops at 97% and 98%. The drop over time targets 32%. A correlation at 32% target informs a deep change is ahead for the EUR/USD and EUR/AUD relationship. Next week trades more of the same and short EUR/AUD tops.

EUR/AUD targets as follows: 1.5845, 1.5832, 1.5780, 1.5712 final. Next week's shorts at 1.6232 and 1.6248 targets easily 1.6001.

AUD/USD broke 0.6732 and traded to 0.6758 highs. Last week's target was 0.6750 on a break at 0.6732. AUD/USD next week 0.6736 decides AUD/USD longs and shorts.

DXY next week trades 101.00's to low 104.00's. Don't lose sight to DXY at 50 year averages at 99.00's as DXY and USD currencies contain a long way to travel lower.

DXY overall is building averages above the price at every 100 pips. As DXY and USD currencies continue drops, more averages build above the price.

USD/JPY tops written for this week was 133.18 while USD/JPY traded to 132.99 highs. Any price above 132.90 is good to go for shorts to target 129.05 and 127.41. USD/JPY averages are dropping extremely fast as the 122.00 targets is now 121.83 on a break of 125.00's.

USD/JPY for next week currently trades oversold. USD/JPY is the far better trade than USD/CHF and USD/CAD. Both USD/CHF and USD/CAD melded into the same exact currency pair as ranges faltered to nothing. To trade USD/CAD is the same as trading USD/CHF. And why bother when USD/JPY and JPY cross pairs are running wide ranges with terrific profit potential.

GBP/JPY top is located at 162.02 and achieves higher status on a break at 161.88. GBP/JPY targets 159.09, 158.61 and 157.24 on a short only strategy.

EUR/JPY shorts next week at low 143.00's to target 142.40 with focus on the break at 142.26 to target longer term at 141.28, 137.59 and 135.66.

GBP/USD last week to long term targets: GBP/USD long term targets are located at 1.2166, 1.2287, 1.2347 and 1.2408. GBP/USD traded to 1.2342 highs and directly to the brink.

GBP/USD began last week deeply overbought as well as GBP cross pairs GBP/CHF, GBP/CAD, GBP/AUD while fairly neutral to GBP/NZD. Next week overbought is attributed to GBP/USD, GBP/CHF, GBP/CAD, GBP/AUD and GBP/NZD.

GBP strategy for next week is short across the GBP board.

The 2 year yield traded this week from 3.63 to 4.25 or 0.62. This range was here as written last week 4.10, 3.99, 3.60.

USD/BRl trade of the week was a breeze. USD/BRL from severely overbought 5.2799 to target 5.2459. USD/BRL traded to 5.2042 lows and an additional 400 pips.

SGD/MYR was also posted to short at 3.3500's to target 3.3200s and targets compkete.

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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