Recall skyrocket overbought EUR/CAD at 1.5500’s against first target at 1.5300’s and much lower forecasted. Here’s EUR/CAD at 1.5100’s.
EUR/CAD performed a GBP/CAD in beginning stages of the trade as GBP/CAD and EUR/CAD both bolted 100 ish pips higher before they embarked on the short journey.
How much did 100 pips matter overall when GBP/CAD end result was 600 pips short from 1.17900’s to 1.7300’s and EUR/CAD 400 pips at 1.5100's. EUR/CAD’s 400 pips revealed, as stated, how miserable this currency pair is despite being miles overbought from 1.5500's.
Most important overall is understanding the 5 W’s of Journalism: Who, What, When, Where, Why, and how (?). Where, When, How and Why are most vital.
The main concept and roughest aspect is one must believe wholeheartedly in the numbers as presented and without a picture. If pictures states a 1000 words then the picture must also reveal 1000 possible outcomes.
I alleviated the concept of pictures many years ago in favor of numbers and targets as I found pictures, candles and charts all wrong. Against the new structural currency price system, pictures, charts and candles are even more wrong.
Recall GBP/JPY from Monday and long from 147.46 to target 149.29 and today traded 149.23 for +177 pips.
Yesterday’s GBP pairs achieved destinations, USD/JPY from Monday at 109.94 short point. And the list of trades and targets from past weeks goes on and on but without failure and without stops as a stop says I don’t trust, I don’t believe, I need protection. Stops are not needed here.
To restate from yesterday's Carney comments: All central bank economic releases are pretty much on target or extremely close. Nothing special in economics. The magic words to move the currency price are interest rates and interest rate related.
No raise anytime soon then look out below GBP. Consideration to raise end 2018 or 2019 then supported and higher GBP. Any commentary written in regards to GBP interest rates to high, to low, just perfect and the answer to the main ingredient is no.
GBP/USD. Break Point now 1.3745, GBP trades below, A break at 1.3558 targets 1.3536, 1.3519, 1.3510 and 1.3502. Above targets 1.3634 upon a break at 1.3606 and 1.3618.
GBP/JPY, Break Point 149.71, GBP/JPY trades below. A break at 148.88 and 148.63 targets 148.44, 148.35 and 148.26. Above 149.31 targets 149.73. Potential higher in GBP/JPY remains terrific.
GBP/CAD Break point now 1.7562. Watch below 1.7365 targets at 1.7343 and 1.7321, Above 1.7424 targets 1.7486 and 1.7497.
EUR/USD break point 1.2088, Watch below 1.1837, targets 1.1821 and 1.1813, Above 1.1881 and 1.1895 targets 1.1918.
USD/JPY Watch again today’s 109.95 and 5 year average at 110.06. Break Point below 108.95. look for higher and reversal at 110.08 and below 109.53, targets 109.39 and 109.26.
AUD/EUR break point 0.6324 and a close monitor for AUD/USD.
AUD remains laser beam focused as potential higher is astounding.
GBP/USD and GBP/JPY remain heavily focused for higher.
EUR/NZD: Recall now trades again back at 1.7130’s and 1.7240’s. Short is the way.
USD/CAD watch break point 1.2777. Shorts and sell rallies was correct. Short and sell rallies will remain correct.
Brian Twomey