FX weekly — DXY and 14 currency pair levels and targets

Currency markets trade this week in perfect neutrality. Neutrality refers to anchor pairs at perfect neutral and at perfect neutral to cross pairs. Cross pairs trade at perfect neutrality and perfect neutral  to anchor pairs. Neither anchor pairs nor cross pairs begin the week oversold or overbought. Longs and shorts are 50 / 50 propositions as neither anchor pairs nor cross pairs drive markets this week. 

Normal weeks trade as anchor pairs overbought / oversold to cross pairs or cross pairs overbought/ oversold to anchor pairs. Anchor pairs may drive prices in any given week or cross pairs are responsible as market drivers.  Trade weeks to extremes trade as cross pairs overbought to overbought anchor pairs or oversold anchor pairs to oversold cross pairs..

The derivation to current neutrality is not only the compression of averages but the failure of prices to break significant averages in order  to trend. Prices ranged as written, prices will continue to range.

Here's EUR/USD December 16 from FX Weekly, 1.0872, 1.1054, 1.1272, 1.1521. EUR/USD today: 1.0892, 1.1061, 1.1273, 1.1520. EUR/USD failed to move in 3 weeks.

GBP/USD in 3 weeks traded 200 pips from 1.2600's to 1.2800's and 1.2500's to 1.2800's in 7 weeks. GBP cross pairs traded 400 pips but neither GBP/USD nor cross pairs broke significant averages and traded ranges to force neutrality. 

Exception to neutrality and the only trades this week  are overbought JPY cross pairs and oversold CHF cross pairs. 

Economic announcements 

Economic announcements are in the 5th and 6th week as most vital Imports and Exports are next on the agenda. 

Economic releases as 6 week cycles are in the 24th year to align with central bank meetings every 6 weeks. Currency analysts, banks and claims of market expertise have been absent and in a coma for 25 years. 

Why central banks should meet every 6 weeks to economic releases moving 0.01 and 0.02 every 6 weeks remains a mystery as no changes are seen from 6 weeks to 6 weeks. Inflation for 6 months ranged from 3.7 to 3.1 or 0.06. That's 32 releases at 0.01. 

The week

Overbought JPY cross pairs are led by GBP/PY, CHF/JPY, AUD/JPY and NZD/JPY. EUR/JPY and CAD/JPY sit at neutral to become followers to GBP/JPY and CHF/JPY as most overbought. 

CHF//JPY targets easily 168.44 and GBP/JPY middle 182.00's. 

Oversold CHF cross pairs runs across the board as EUR/CHF, GBP/CHF, AUD/CHF, NZD/CHF and CAD/CHF. 

USD/JPY longs and shorts are found at 144.65 and targets shorts at 142.93.

EUR/USD ranges from 1.0892 to 1.1061. Levels at 1.0892 break targets 1.0829 while shorts apply to any price in the vicinity of 1.1061.

GBP/USD trades between solid lines from 1.2587 to 1.2785 and 1.2832 at the 5 year average. No changes over the last 7 weeks. 

SPX 500 from overbought December 24 at 4754.00 traded highs at 4792 and lows at 4682. As written,  4566.34, 4509.19 and 4490.78. Trade runs about 80 points. 

USD/CAD not much as usual over past months. Oversold CAD/CHF and CAD/JPY heading lower guarantees USD/CAD trades in a range from 1.3408 to 1.3275. 

EUR/AUD trades 1.6300 to 1.6100's and GBP/AUD 1.8952 to 1.8715. 

AUD/USD trades 0.6649 to 0.6781 and 5 year average at 0.6993 while NZD/USD trades 0.6161 to 0.6300's. 

EUR/NZD ranges from 1.7600's to 1.7400's and GBP/NZD 2.0400's to 2.0200's.