USD/JPY big break line for higher on Monday was 138.89 and today 138.64. DXY must break many averages at 105.00s to target 106.00s.
Currently, 106.00s are located at far extremes, and 105.00s holds steel walls. Since DXY’s top at 114.79, averages were built above into DXY’s price at about every 100 – 150 ish pips.
As DXY and USD/JPY trade lower, averages will continue to drop. USD/JPY at today’s 138 will eventually become 137.00’s then 136.00’s. This nullifies 140 as this price doesn’t exist except as a possible target above 138.
Today’s inclusion to EUR/AUD, AUD/USD, and NZD/USD counts as ten currency pairs, and about eight more currencies remain. Prevailing currencies include JPY cross pairs, EUR/NZD, GBP/NZD, GBPP/AUD and CHF/JPY. Not much ever happens to USD/CHF and CHF cross pairs year after year.
EUR/AUD
EUR/AUD correlations to AUD/USD runs – 0.21 and +67% to EUR/USD. EUR/AUD averages are at 1.5543 and 1.5576, above and below at 1.5382 and 1.5364. From 1.5576 to 1.5364 ranges 212 pips.
Upside targets above 1.5576 and 1.5543 are at 1.5670, 1.5726, 1.5806, and 1.5808. Trade strategy is long above 1.5576 and short at high 1.5700s and low 1.5800s.
Below, 1.5382 and 1.5364 targets are 1.5280, 1.5058, and 1.5038. The most vital is 1.5364, as this average is perfect.
EUR/AUD is neither overbought nor oversold as it exists to trade around as a market creature by EUR/USD and AUD/USD movements. Overall, EUR/AUD is a terrific currency pair. GBP/AUD contains the same trade strategy as EUR/AUD.
AUD/USD
AUD/USD averages are at 0.6729, 0.6970, 0.7138, 0.7438, and 0.7626. AUD/USD targets are found at 0.6744, 0.6888, and 0.6952. Above 0.6970 targets 0.7094. Above 0.7138 targets 0.7388. Above 0.7438 targets 0.7626, then 0.8158.
AUD/USD trades oversold from long-dated averages and overbought from 0.6729. Above 0.6729 contains a long-only strategy. Below 0.6729 targets 0.6637. Overall, AUD/USD is another great currency pair and never to exclude from the repertoire of traded currencies.
NZD/USD
NZD/USD averages are at 0.6212, 0.6452, 0.6633, 0.6820, and 0.6905. NZD averages begin convergence at 0.6800s and 0.6900s.
Targets are located at 0.6359 and 0.6471. Above 0.6452 targets 0.6569. Above 0.6633 targets 0.6722. If 0.6820 and 0.6906 break, then targets becomes 0.7169 and 0.7241.
The brick wall to NZD/USD is located at 0.6905 and 0.6907. Below 0.6212 targets 0.6058. NZD/USD is overbought from 0.6212 and oversold from 0.6820 and 0.6905.