FX Weekly: 15 Currencies Levels and Targets and 10 Year JGB

DXY begins the 3rd consecutive week trapped between 103.00’s to 101.00’s and ranged 122, 125 and 175 pips for the past 3 weeks. DXY 103.00’s traded overbought and oversold at 101.00’s. DXY’s position this week remains inside the same 103.00’s to 101.00 range.

The DXY range compression is forcing a slowdown to all currency prices. EUR/USD for example traded 142 pips last week and 168 pips 2 weeks ago. DXY is long past time to break 101.00’s, hold and challenge the 100.00’s and 99.00 levels.

EUR/USD trades this week from 1.0845 to 1.0942 or 97 pips. EUR/USD 1.0845 is expected to hold while a break of 1.0942 offers 1.0979 and overbought. The week offers at best 134 pips.

GBP/USD’s 169 traded pips last week resulted in 129 pip day for Friday’s CPI. GBP/USD trades 1.2524 and 1.2628 Vs 1.2860. Only a bombshell event this week forces GBP/USD to challenge but not break 1.2860. GBP/USD overbought begins at 1.2800’s.

GBP/NZD holds to long term targets at 2.0327 and 2.0152. For the week, 2.0696 is required to break and travel lower to 2.0500’s easily. GBP/NZD contains about 500 pips of downside and 500 pips of shorts.

EUR/NZD requires a break at 1.7560 then targets become 1.7436 and 1.7337.

EUR/AUD sits on massive supports at 1.5800’s and 1.5700’s. A break at 1.6177 is required to challenge 1.5800’s again. For the week, EUR/AUD targets a break of 1.6359 to target 1.6288. Shorts are located at any price in the vicinity of 1.6400’s.

Overbought GBP/AUD shorts are located anywhere in the 1.9100’s and targets 1.8900’s easily then 1.8800’s.

Deeply oversold AUD/USD big break for higher at 0.6705 targets 0.6732 and to trade the range from 0.6705 to 0.6910.

NZD/USD breaks 0.6177 targets the range from 0.6177 to 0.6398.

GBP/CHF trades 1.1318 to 1.1404 while EUR/CHF trades 0.9744 to 0.9801. Above 0.9801 targets 0.9829. Both EUR/CHF and GBP/CHF begin the week oversold and support EUR/USD and GBP/USD from breaking significantly lower.

Oversold AUD/CHF must break 0.6062 to target higher while NZD/CHF must cross 0.5584. Good, decent and quick longs for all CHF cross pairs.

Oversold EUR/CAD leads GBP/CAD and higher for the past 2 weeks. EUR/CAD targets a break at 1.4483 to target 1.4523. GBP/CAD sits on solid support at 1.6724 and targets 1.6900’s then short. GBP/CAD is the preferred trade to EUR/CAD.

JGB 10 Year Yield

The JGB 10 year yield opens the week at 0.40 and no threat to break the upper YCC band. Highs target 0.4083 vs lows at 0.33. The JGB 3 month rate is also in good standing in relation to the bottom YCC band.

USD/JPY short targets this week are located at 142.92. Overbought GBP/JPY achieved severely overbought status by trading 4 pips to every 1 USD/JPY pip while EUR/JPY trades 3 pips to USD/JPY.