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FX Next Week: Opportunities Loom In Many Pairs

Published 08/11/2022, 06:22 AM
Updated 09/03/2023, 03:41 AM

EUR/USD topside yesterday was set against targets at 1.0256 and 1.0259. Both extraordinary moves for the day and targets achieved for big profits, yet EUR/USD breaks vital 1.0285 and trades another 82 pips to 1.0367. Note the location of 1.0285 as the dead center of the hourly candle.

The break of 1.0285 then placed EUR/USD from 1.0285 to 1.0350. What allowed EUR/USD to travel higher was the ECB at 10:00, then EUR/USD was good until 1.0304. The BOE at 11 AM stopped EUR/USD to begin the long slide lower to 1.0320. The Fed at 12:30 then settled EUR/USD at 1.0296 from 1.0367 highs or 71 pips.

EUR/USD yesterday traded for the day overall 167 pips and about 67 more than usual. On the surface appears as just another EUR/USD trade day but 1.0285 set EUR/USD off 82 of the 167 pips or 1/2 of its total 167 pip range.

The two most vital points to traded markets are broad ranges and range points such as 1.0285. How much was 1.0285 respected was seen in the weekly trade target at 1.0283. Friends and subscribers' profits were 130 ish pips, but the pips were easy and guaranteed. And the trade duration was four days.

Range Vs. Price shares a unique relationship and is vital to understanding market trading.

What were the trade options? Not only was EUR/USD overbought at 1.0285 for the day, but the 1.0285 location was dangerous. The only option was short and short anywhere.

EUR/USD moves yesterday were unusual, extraordinary, and mathematical weirdo Ville. Correct was EUR/USD to reverse at 1.0250’s.

Who or possibly which central bank took EUR/USD higher from 1.0285 is unknown. We’re no longer privy to such information, as was the norm in the old days from the top 4 banks. Previously, the top 4 banks released Flow Reports to determine who major banks and central banks were big buyers and sellers.

EUR/USD Big break for higher is now 1.0420, and the range becomes 1.0357 to 1.0294. Below 1.0294 targets 1.0231 easily. EUR/USD Friday should close in the vicinity of 1.0168. The lower for EUR/USD is, the better for next week's long trade

GBP/JPY shorts yesterday at 163.82 traded to 163.64 then began the long drop to 161.00’s. GBP/JPY is vital at 162.01, allowing GBP/JPY to trade to 161.00’s. The big break for higher is now 162.05.

EUR/JPY is on the verge of trading lower at 136.95. EUR/JPY is a horrible currency at the moment heading into week 3. EUR/JPY trades neutral to neutral without significant progress. EUR/JPY is more suited as a day trade. EUR/JPY broke vital 136.93 and traded 30 pips lower to 136.60. This should serve as a warning to EUR/JPY.

DXY achieved 106.45 and USD/CAD 1.2990’s. As written yesterday, USD/CAD 1.2958 Vs. DXY 106.45. The DXY Vs. USD/CAD differential spread from 20 ish pips to ’40s.

Higher for USD/CAD must break 1.2835. DXY now enters its next range from 103.00’s to 105.00’s. Vital above is located at 105.54, 105.76, and 105.80 Vs. 104.30 below. The breaks below for DXY were significant. As much as 1.0285 was for EUR/USD.

AUD/USD broke above 0.7001 and lower for AUD/USD must crack 0.7013. The current range is 0.7055 to 0.7096, then begins overbought and shorts.

Most important to overall currency markets is NZD/USD break above 0.6362 and today 0.6368. NZD/USD at 0.6417 is fairly neutral, meaning NZD has every ability to travel to 0.6500’s or break below 0.6368. We’re short next week in the vicinity of 0.6490’s or long upon a break of 0.6368.

GBP/AUD yesterday was written longs at 1.7395. Correct was short at 1.7395. Deeply oversold GBP/AUD should be a big winner for longs next week. Same story for EUR/AUDUSD/JPY for next week 131.61.

GBP/USD. Looking for a close around 1.2104 for longs next week. A close much higher than GBP/USD is on the last trade rank list.

EUR/NZD as written yesterday long for a quick 50 pips at 1.6178. EUR/NZD traded from 1.6150 to 1.6274. EUR/NZD current trades deeply oversold and informs NZD/USD could easily break 0.6368.

Gold traded 20 points yesterday and is expected to trade 10 points today. S&P 500 traded 31 points yesterday and within the 25-point framework. Max today is right at 47 pips.

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