Inside the Currency Market: EUR/USD

Last trade saw shorts from 1.1402 hit low 1.1353,and in line with 1.1360 – 1.1344 Bottom. Bottom held at 1.1344. Price reversed higher to break 1.1409 to Dead Stop at 1.1436, 3 pip violation of reported 1.1433.

EUR/USD. Bottom. 1.1336.Range above 1.1419, Below 1.1365 and 1.1353.Overbought sell point 1.1463, 1.1525, 1.1532.Strategy. Longs above 1.1393, Target 1.1463 – 1.1532. Reverse short to Target 1.1462, 1.1459,1.1428, 1.1413. Points on the way up, 1.1402, 1.1417, 1.1433, 1.1448, 1.1463.

Shorts Below 1.1392, Target 1.1364. Watch long reversal here. Points on the way down, 1.1399, 1.1389, 1.1384, 1.1376, 1.1369, 1.1352, Bottom 1.1336.

Brian Twomey Inside the Currency Market, btwomey.com

Inside the Currency Market: EUR/USD

Last trade, Longs above 1.1514, Dead Stopped 1.1540, Target 1.1572 saw 1.1547 point reverse. Shorts then reversed to reported 1.1522 then break 1.1514. Shorts from 1.1514 saw 1.1451 lows and 5 pip break of reported Bottom at 1.1456. Bottom held all night until 5 pip break. Range held ALL night as mentioned AT 1.1447. Shorts profited on slight miss from last evening. Many many pips are earned here daily, how many I don’t count.

On site is Bio for interested as well as an article in development on market prices.

EUR/USD. Bottom 1.1344. Range break above 1.1493, Below 1.1309. Overbought sell point 1.1460, 1.1488, 1.1517. Strategy. Longs above 1.1402, Target 1.1460 then short reverse to 1.1431, 1.1417, 1.1402. Points on the way up, 1.1408, 1.1420, 1.1433, 1.1477,1.1460, 1.1517.

Shorts below 1.1401, Target 1.1372, watch for reversal long to 1.1401. Points on the way down, 1.1388, 1.1382, 1.1376, 1.1360, 1.1344 Bottom.

Brian Twomey Inside the Currency Market, btwomey.com

Market Drivers: Brian Twomey

Welles Wilder wrote the Delta Principle, the special number to determine market turning points. What’s a special number in my educated model estimation? The interest rate. It drives markets since the start of time, all markets and all financial instruments from stocks to options to currencies. What creates market prices and trading opportunities is the disparity in interest rates. China is different than the US, GBP is different from EURO, Euro different from Hungary. So those markets will move based on the disparity in interest rates. But it is the interest rate that provides the link to the world and the link to all market prices. Only in the modern day has anyone realized market linkages but market linkages has never been defined. China and Hong Kong joined world markets because they adopted an interest rate to provide a market for their financial products. A Yuan devaluation had to accompany an interest rate drop in order for China to stay market oriented in relation to the remainder of the world. Volatility occurred because other nations had to adopt their own interest rates to stay connected not only to China and Hong Kong but the remainder of the world. A change in China interest rates means a change in other nations interest rates. I’m convinced either a single or double number exists that defines every market on the planet and I believe those numbers are found between the US and Euro because those pairs are not only most widely traded but the vast majority of nations use either the Euro or USD in daily economic life. All other nations then follow the single and double number of the Euro and USD. A drop in one currency pair means a rise or fall in another currency pair. A rise or fall in stock markets means a rise or fall in all other stock markets. Its not a follow the leader scenario but its follow the leader purposefully so other nations maintain their economic viability in relation to other nations of the world.

What an interest rate does for markets is allow a market and price movements to occur purposefully and created purposefully. Why? Because ranges are built into the system of prices. Its impossible to have zero ranges in prices so prices are forced to move. Ranges may expand and contract but they could never go to zero. EUR/USD moved hundreds of pips this week because of the disparity in interest rates by itself and among its counterpart nations. Interest rates rise and fall based on market conditions. Yet its a perfect system that operates within and among nations so therefore is a perfect market price seen and known. Its where I believe I will find the single or double number that drives overall markets and prices. Ask why all stock markets in unison dropped the last few days, why EUR and GBP rose, why JPY dropped. How does markets know to sell or buy, long or short. How does prices Dead Stop and reverse at targeted points. Its found in Interest rates and the single or double number. More coming here