The magic words spoken by central banks is CPI as the prime economic indicator since the start of time is falling and will head lower. GDP is already reflected. How is it all CPI and GDP fall together in the same locations from nation to nation, and all at the same time. How is it exchange rates all move together at the same time and land in the same locations. Only I figured it all out and its why I don’t have ability to read another commentary from market people. Someday I will write it all. All would be in shock how this stuff really works.
We don’t have trends on our hands, we have price reactions to data and price waiting for direction.
Vital points today, above 1.1616, 1.1518, 1.1438, 1.1376, 1.1350- 1.1359, Below 1.1331, 1.1254, 1.1225, 1.1204, 1.1181, 1.1133. Most important for shorts 1.1331. This line 1.1331 is solid.
Bottom. 1.1291. Range above 1.1524, 1.1366. Below 1.1331 and 1.1176, Target 1.1442, Failure point 1.1385. Target met at 1.1442, sell to 1.1396, target met at 1.1385, sell to 1.1368. Points on the way up, 1.1352, 1.1358, 1.1367, 1.1385, 1.1391, 1.1415, 1.1443.
Shorts below 1.1331, target 1.1311, 1.1291 Bottom.
Brian Twomey Inside the Currency Market, btwomey.com