EUR/USD: Levels, Ranges, Targets

DXY as a currency is oversold yet DXY yields and Fed Funds are overbought. Most overbought is Fed Funds. DXY lacks ability to travel anywhere while EUR/USD remains at the mercy of DXY. Yet the EUR/USD top is prominent for many days. Deep inside EUR/USD price is a clear range condition. Despite the top, EUR/USD isn’t ready to thrust downwards. Nor can EUR handle any far upsides. But we have Yellen today and her tired old Keynesian “I’m incompetent mantra” and her stubborn I won’t reduce the balance sheet to assist the economy. First of the month closes, we’ll look closer at EUR/USD and DXY together and determine what’s happening.

Most vital break points above 1.1564, 1.1469, 1.1389, 1.1337, 1.1328, 1.1311, 1.1302 – 1.1305, Below vitals 1.1268, 1.1208, 1.1185, 1.1161, 1.1134, 1.1088.

EUR/USD Bottom. 1.1246. Range above 1.1584, 1.1494, 1.1337, Below ranges 1.1268, 1.1114, 1.1028. Target 1.1393, Failure point 1.1335. Note 1.1337 range point. Target met at 1.1393, sell to 1.1348, Target met at 1.1335, sell to 1.1319. Target at 1.1393 achieves Max 92 pip daily range. caution longs. Top here, further caution longs. Points on the way up, 1.1306, 1.1311, 1.1319, 1.1335, 1.1342, 1.1354, 1.1364, 1.1393.

Shorts Below 1.1302, target 1.1274, 1.1260, 1.1246 Bottom. Points on the way down, 1.1290, 1.1282, 1.1278, 1.1276, 1.1261, 1.1246 Bottom. Longs must cross 1.1274 to head long again.

Brian Twomey, Inside the Currency Market, btwomey.com

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