Currency and all financial market prices are infatuated to trade to the brink and to extremes. And many examples exist throughout years of trading and markets. DXY 96.94 before vital 97.00's, then drop. USD/CAD 1.2819, then drop. GBP/USD last Monday 1.3419 and 1.3387 then drop.
For interested, USD/JPY achieved weekly target at 113.35 and offered 31 extra pips from trade to 113.04. From 115.51 and 2 lots resulted in 323 pips.
CAD/JPY achieved target at 88.36 from 92.00's and traded to 88.40. GBP/CAD target at 1.6600's traded to low 1.6700's from 1.7000's, EUR/CAD achieved 1.4100's from 1.4400's. All trades previously posted and the list fails to include weekly and daily trades.
DXY Vs WTI Vs Gold Vs S&P
While DXY and Gold trade above 5 year averages, the S&P's and WTI also trade above 5 year averages. DXY and Gold are the safe assets while WTI and the S&P's the risk instruments. If DXY and GOLD remain above 5 year averages then WTI and S&P's must drop below the 5 year.
10 Year Yield
Closed 1.48 and in the range from 1.2290 to 1.6146 as posted September 29. October and November held a range from 1.7111 to 1.4210. Below 1.2290 targets the range from 1.2290 to 1.1803. Above 1.6146 targets the range from 1.6146 to 1.8696.
DXY's drop from 96.94 fell prior to next resistance at 97.16. Next targets are located at 97.62, 98.14, 98.47, 98.52, 98.62 and 98.81. Above levels are short points to USD currencies and long EUR, GBP and AUD. DXY from the close at 96.07 contains only 100 pips to 97.16 which means count 100 pips lower for EUR, GBP, AUD and long entries are established.
DXY 96.94 allowed USD/JPY to trade to 113.35 target and EUR/USD to 1.1305 and a continuation to long only strategies.
While last week was a tough week, the current week strategy is throw a dart at any currency to trade and profit.
USD/CAD Vs CAD/JPY V CAD/CHF
USD/CAD dropped Friday from 1.2796 to 1.2776 and a dead move for CAD. USD/CAD for the week sits massive overbought but for week 2, lacks range ability. CAD/JPY and CAD/CHF will lead the way higher this week and drive USD/CAD lower.
USD/CHF and USD/JPY
USD/CHF 0.9231 decides CHF fate while USD/JPY 112.92 break targets much lower to middle 111.00's and closer to 109 target. USD/CAD is the odd ball currency again to its brothers USD/CHF and USD/JPY.
JPY cross pairs are all oversold for the week and sitting just ahead of massive supports. NZD/JPY is added to the list of JPY cross pairs but dead last and only because NZD/PY trades just above supports and correlates to high 90% to USD/JPY. Oversold JPY cross pairs assumes higher and short tops for USD/JPY.
CHF/JPY 122.35 decides CHF/JPY higher and lower. CHF/JPY 122.35 corresponds to USD/JPY 112.92 and USD/CHF 0.9231. All will break together. AUD/USD While 0.7309 and 0.7338 are primary price drivers, 0.7338 is massive oversold along with all AUD cross pairs. AUD/USD 0.6900 target is 200 pips from the 0.7112 close. Long only strategies is the preferred way forward.
Same story to NZD over the past 5 weeks. NZD/USD contains range, noise and problems to its cross pairs. Until this situation rectifies, better trades exist.
GBP/USD, GBP/JPY, GBP/AUD and caution GBP/NZD are preferred GBP trades for the week. GBP/JPY earns a place on the GBP rankings due to overbought and the pips are easy to profit.
No thrill to this weekly trade but here's the basic set up. Short 113.70 and 113.89 to target 113.11. The USD/JPY driver is DXY as USD/JPY always shared a high 90% correlation to DXY. The potential upside to DXY is exactly 109 pips to 97.16 which places USD/JPY at 114.08 and 114.23. DXY tops and short points for Monday are located at 96.31 then 96.56 and during the week at 97.05 which says 97.16 may not trade this week.
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.