DXY at 100.82 traded deeply oversold and dangerously close to the 99.00 break while EUR/USD at 1.1032 became massively overbought and near the 1.1100 break. EURUSD was heading lower and DXY higher. The only question was how fast or how slow would prices travel. 

NFP was a terrific bonus as EUR/USD was relieved of overbought conditions to now trade oversold while DXY oversold offers severely overbought at 102.00's. 

DXY vital breaks are located at 103.29, 103.55 and 103.67 then begins averages at every 100 pips to 114.00 highs. Below, DXY must break 101.90 and 101.75. Longer term, DXY must break 99.00, 98.00 and 97.00's. Break at 97.00's then DXY travels miles lower to 93.00's. 

The DXY. USD and USD/JPY trade strategy remains short only as DXY downside contains 400 pips to challenge the 99.00 support. DXY's overall range is located from 99.00's to 103.00's. 
Oversold EURUSD is held by supports at 1.0629 and  1.0705. Vital 1.0912 must break for EUR/USD to trade from 1.0912 to 1.1135. Higher targets are located at 1.0805, 1.0925 and 1.1048 as the final target. EUR/USD contains easy ability for the 1.1048 target to achieve its destination this week. EUR/USD long entry is found around 1.0755.

 USD/JPY broke 129.65 and traded to 131.00's. Shorts must again break 129.65 to target 128.00's. USD/JPY overall trades 839 pips from 124.92 to 133.31. Lower this week for USD/JPY will trade 132.00's to 124.92 to further compress the range. The final target at 121.00's holds on a short only trade strategy. 

GBP/USD must break 1.2114 and 1.2144 then the target becomes 1.2418 on a long only strategy. GBP/USD is required to break 1.2584 to target 1.2700 as the final destination. 

AUD/USD targets 0.6940, 0.6973 and 0.7105 while NZD/USD targets 0.6428, 0.6512 and eventual 0.6601. NZD/USD big line break above is located at 0.6492. 

Gold

As EUR/USD travels higher, Gold targets 1975.88 and 1982.22 on a long only strategy. Shorts begin at 1975.00's. As DXY approaches 99.00's and 400 pips of downside, Gold has ability to trade 2034.49. Driving Gold higher is average supports below at every 100 pips from 1800.00's. 

SPX

Weekly target is located at 4222.69. SPX supports are located at 4100.00's, 3900.00's and 3700.00's. Expect SPX to travel higher on a slow slow grind as current averages fail to support much higher to 4300's over the next month. SPX 5000 is a current dream rather than reality. 

WTI

WTI ranges from 77.00's to 83.00 and 85.00's. For the week, target is located at 81.32. Above 85.00's, WTI travels much higher.  

EUR/AUD Vs GBP/AUD

GBP/AUD's big break for higher is located at 1.7564 and targets 1.7700's easily. GBP/AUD trades deeply oversold on a long only strategy. The prolem to GBP/AUD is overbought EUR/AUD. EUR/AUD's top is located 1.5700's and 1.5800's and can't handle much higher in the short term. The GBP/AUD and EUR/AUD relationship has been off kilter for the past 2 months and doesn't appear to stabilize anytime soon. 

USD/CAD sits at do or die at 1.3382 and massive support at 1.3131. USD/CAD's next target below is found at 1.3232 however USD/CAD will struggle to trade lower at 1.3309. The final target at 1.3113 holds. 

GBP/JPY trades 156.28 to 161.34. JPY cross remain on a short only strategy to trade lower alongside USD/JPY. The big 3 JPY cross pairs remain GBP/JPY, EUR/JPY and CAD/JPY. 

Overall best trades for 2023 remains EUR/USD, GBP/USD, USD/JPY and JPY cross pairs GBP/JPY, EUR/JPY. GBP/CAD is the better trade to EUR/CAD, EUR/NZD over GBP/NZD and EUR/AUD over GBP/AUD. 

Trading currencies and other financial instruments carries a degree of loss and possible loss of entire investments. Please managed your own risks, stop loss, and margins requirements.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD consolidates weekly gains above 1.1150

EUR/USD consolidates weekly gains above 1.1150

EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.

EUR/USD News
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains

GBP/USD stabilizes near 1.3300, looks to post strong weekly gains

GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains. 

GBP/USD News
Gold extends rally to new record-high above $2,610

Gold extends rally to new record-high above $2,610

Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.

Gold News
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap

Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap

SNB is expected to ease for third time; might cut by 50bps. RBA to hold rates but could turn less hawkish as CPI falls. After inaugural Fed cut, attention turns to PCE inflation.

Read more
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Majors

Cryptocurrencies

Signatures