Weekly Trades: EUR/USD, USD/JPY, GBP/CAD, AUD/CHF

Brian Twomey Brian's Investment

As mentioned in last week's trade post, ranges for all currency pairs expanded and allowed far distant targets to achieve destinations. More of the same to wide ranges will trade this week to again offer terrific profit opportunities.

Approximately 4 more weeks remain to wide ranges and affects all currency pairs as markets trade to normalized prices. Wide ranges means the current trading environment is the best opportunity in 2 years to profit easily from practically any pair chosen. The next 2 year cycle to experience easy trades to the current degree is 2022.

Currency markets as a whole, last week's 2700 and 2300 pip deviation is now 1500 as the gap is closing by normalcy returns. Upon corrections this week, the gap widens. This overall gap will take us down to about 300 in about 4 weeks then prices will trade in the doldrums again.

Best pairs this week to trade against wide ranges are GBP/AUD, EUR/AUD, EUR/NZD, GBP/JPY. Second tier GBP/USD, USD/CAD, GBPCHF. Third layer contains AUD/USD, AUD/JPY, AUD/CHF, NZD/JPY and CAD/JPY. NZD is a well functioning universe of currency pairs but lands in 4th position due to smaller ranges. AUD significantly woke up from its months long coma and is now on the march.

Non performing or problem pairs this week are EUR/JPY, CHF/JPY, EUR/GBP, EUR/CHF, GBP/NZD and GBP/CAD. EUR/USD and USD/JPY ranges has been problems for weeks. EUR/USD is deeply effected by EUR/GBP levels and USD/JPY is off kilter to its JPY cross pairs. Yet both USD/JPY and EUR/USD will trade 2 and 300 pips this week.

AUD and GBP pairs contain the best trend trades for longer term targets.

Weekly Trades

EUR/USD

Short 1.1126 and 1.1158 to target 1.1024. Must cross 1.1126, 1.1094 1.1061 and 1.1041.

Short below 1.0997 to target 1.0866. Must cross 1.0965, 1.0931 and 1.0899.

USD/JPY

Long 107.32 to target 108.36. Must cross 108.05.

Long above 108.78 to target 109.82. Must cros 109.50.

AUD/CHF

Long 0.5845 and 0.5803 to target 0.6103. Must cross 05887, 0.5929, 0.5971, 0.6013, 0.6055 and 0.6097.

Long above 0.6188 to target 0.6359. Must cross 0.6230, 0.6272, 0.6314 and 0.6356.

GBP/CAD

Short 1.7451 to target 1.7189. Must cross 1.7386, 1.7321, 1.7256 and 1.7191.

Short below 1.7059, below targets 1.6927.

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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