EUR/USD: Levels, Ranges, Targets
EUR/USD price remains on the floor, short term, means next day usually until the Tuesday changeover. Current price is still working in Friday as is the usual case for currency prices for time immemorial. The big monthly average break is found at 1.1552. EUR/USD V DXY remains in about a 200 pip range V each other.
Watch DXY 93.97 as DXY is leading all, all currency prices. I cannot stress enough the severe problems inside DXY prices. To offer a brief synopsis, the EUR/USD V DXY relationship resembles the EUR/USD, EUR/JPY, USD/JPY numbers just before the 2008 crash. The territory prices trade currently is scary, petrified scary. I’m not saying a crash is imminent but I’m saying price pressures are too high and severe and ready to severely pop.
The outline in the monthly averages was a small part of DXY problems. But price problems must also fall to blame on Yellen. And Yellen is why EUR/USD prices within itelf is finding overbought V oversold struggles. To believe Draghi, he says Europe is on economic track. Any EUR/USD moves higher are the direct result of DXY because EUR/USD lacks ability to fly higher unless its pure DXY driven. High balance sheets, re invest proceeds, severely overbought USD interest rates can only lead to the same economic situation we currently see at present.
EUR/USD Bottom 1.1278. Price achieves bottoms by breaks lower at 1.1306 and 1.1292.
Upper targets are found at 1.1352, 1.1377, 1.1403. Break points above located from 1.1482, 1.1409, 1.1386, 1.1355, 1.1343 and 1.1340.
Downside points 1.1225, 1.1251, 1.1211, 1.1164, 1.1129 and 1.1112. Watch this week breaks at 1.1251, 1.1225 and 1.1211. Not recommended to trade inside these numbers, wait for breaks to target much lower prices.
Range breaks above 1.1562 and coincides with monthly averages at 1.1552. Bottom range breaks 1.1124 and 1.0924. Now that Friday fireworks are over, back to normal in 52 pip day’s range.
Brian Twomey, Inside the Currency Market, btwomey.com