Interested readers to Cross Pair Allegiance article, charts didn’t post here, see fxstreet.net or Modern Trader Magazine and read full story and view charts. Part 2 of the same article will post next month then comes June or July for the Interest Rate Index article alongside calculated data. I encourage all to read Howard Simons at Modern Trader Mag. He investigated the various DXY indices alongside the official DXY. Simons for years writes different, interesting, valuable, helpful, insightful studies. Simons is far from the same old tired stuff posted by so many day in and day out.
DXY V EUR/USD will post maybe today or tomorrow. This month will be most important I believe because I suspect we are at vital points to tell us higher or far lower for both.
Non Farm Range. 155 – 255. Above 205 sends EUR/USD lower. Above 255 sends EUR/USD crashing lower all day. Below 155, EUR/USD skyrockets higher. Between 155 – 255, ranges but EUR/USD higher. Total release movements is roughly 150 – 200 pips, that’s roughly 100 pips upside and 100 pips downside. 100 pips higher, sell it, 100 pips lower, Long. Outside 255 and 155, we see big giant spikes.
EUR/USD. Bottom. 1.1327. Larger range 1.1327 – 1.1506. Range points above 1.1418, 1.1488, 1.1497 and 1.1610. Below 1.1348, 1.1279 and 1.1160. Target 1.1506 and Failure point 1.1439. Note range point 1.1418. At 1.1506, shorts only. Above 1.1439, shorts only. Shorts only because Ranges compress, compress. Above 1.1506, in days ahead opens flood gates to 1.1548, 1.1591, 1.1633, 1.1676. Points on the way up, 1.1386, 1.1412, 1.1419, 1.1425, 1.1439, 1.1455, 1.1472, 1.1489, 1.1506.
Shorts below 1.1382, Target 1.1355 then Bottom 1.1326. Then 1.1279 range point.
Brian Twomey, Inside the Currency Market, btwomey.com