The battle lines are drawn between GBP/NZD Vs. EUR/NZD and GBP/AUD Vs. EUR/AUD as all pairs moved 500 pips in February to meet the criteria to re-evaluate. A far different situation has existed since December as GBP/NZD and GBP/AUD trade in a prominent and respected range while EUR/NZD and EUR/AUD trade at significant tops.
The significant rise in all four currencies since December is responsible for driving AUD/USD and NZD/USD to the ground at the lowest oversold depths.
The driver currencies are EUR/NZD and EUR/AUD at representative tops and mathematical limits, as prices can only travel so far until the maximum price is capped. The trade signal is derived from EUR/NZD, and EUR/AUD as GBP/NZD and GBP/AUD follow. More importantly, significant tops to EUR/AUD and EUR/NZD informs AUD/USD and NZD/USD achieved bottoms.
The rise in all four currencies was derived from DXY’s upward moves in January and February, as all four currencies are delineated as members of 15 of 28 currencies driven by DXY and USD. The same top for EUR/NZD and EUR/AUD translates as DXY and USD tops for USD/CAD, USD/JPY, and all associated currencies as USD/Other currency.
Generally, tops and bottoms to EUR/NZD and EUR/AUD convert to tops and bottoms to DXY. The difference in substituting other currencies to analyze DXY is EUR/AUD, and EUR/NZD provides early warnings as both trade more comprehensive ranges.
EUR/NZD top is at 1.7243 and targets 1.6972, 1.6962, and 1.6925. Significantly lower must break 1.6961; however,, EUR/NZD is up against massive supports from 1.6840 to 1.6700. EUR/NZD trades massive overbought.
GBP/NZD averages are at 1.9382, 1.9415, 1.9512, and 1.9914. The below targets are 1.9311, 1.9277, 1.9263, and the bottom at 1.9133. The most vital are 1.9277 and 1.9275.
EUR/AUD lower targets are at 1.5809, 1.5801, 1.5753, and 1.5690. Lower averages hold EUR/AUD at 1.5753, 1.5616, 1.5601, and 1.5562. EUR/AUD also trades severely overbought.
GBP/AUD must trade below 1.8121, or GBP/AUD targets 1.8175, 1.8204, and 1.8253. Below 1.8051 targets breaks at 1.7971 and 1.7957 to trade to 1.7849, 1.7738, 1.7694. GBP/AUD trades significantly overbought, particularly from 1.7600s.