EUR/USD: Levels, Ranges, Targets

Today’s EUR/USD long target and sell point posted at 7:00 am was 1.0671. EUR/USD achieved 1.0667 in the 11:00 am hour and target was off by 4 pips. Once 1.0649 broke in the 10:00 hour then EUR/USD target was inevitable.
On the reported reverse from 1.0671, target at 1.0653 achieved in seconds. EUR/USD then struggled for 30 minutes in the lower 1.0650’s before it broke lower. Most important points were 1.0617, 1.0629, 1.0649 and 1.0660.
Pre June before the structural price changes imposed on markets by central banks, from entry to long target and reverse to support, the trade would’ve been done in 1 to even 2 hours at most. EUR/USD or any currency pair price would’ve flew to target and reversed then rested. The trade was then done. Perform this operation for 3 or 5 currency pairs, 2 hours at most and the job was done. Today was a long but the reverse holds for short targets then reverse long for extra pips. What are the changes and what did central banks do to their prices?
In the 9:00 am hour, EUR/USD bolted to 1.0640 then dead stopped. 1.0640 was the interval point between 1.0629 to 1.0649. EUR/USD then traveled back to 1.0629 support and dead stopped higher at 1.0653 in the 10 am hour. 1.0653 was the point between 1.0649 to 1.0660. EUR/USD t traveled back to 1.0649 support then hit 1.0667 target in the 11:00 hour.
The new structure imposed on markets is pure treachery in price moves and much longer for targets to hit destinations on most days. And this new structure applies to all currency pairs. Instead of wait for target, mulliple longs and shorts could’ve been taken to work up to the 1.0671 target. A long from 1.0617 would’ve paid 50 pips then short to 1.0653 for another 14 for a total of 64 pips. Yet multiple pips traded without profit.
Lets try this again.
EUR/USD long target and sell point is located at 1.0661, 10 pips lower than this morning’s 1.0671. Most important break points are located at 1.0629, 1.0630 and 1.0636. Above 1.0636 then range to target becomes 1.0636 to 1.0661.
1.0661 target achieves then short to 1.0643.
Above 1.0661, then next comes 1.0702, 1.0716, 1.0762 and 1.0785. What happened was 1.0793 disappears in favor of 1.0785 as top point. Previous 1.0785 devolves to 1.0762. Then 1.0723 and 1.0721 disappears in favor of 1.0716 and 1.0702.
Below bottom targets are located at 1.0601 and 1.0570. Further below 1.0503. A long at 1.0601 targets 1.0612. A long at 1.0570 targets 1.0597. Any price below 1.0570 is a market gift long to cross 1.0570 to target 1.0597.

 

Brian Twomey, Inside the Currency Market, btwomey.com

EUR/USD: Levels, Ranges, Targets

Today’s EUR/USD top target and sell point is located at 1.0671. Why 1.0671 is because a wide area exists in between 1.0671 to 1.0721, 1.0723 then 1.0785 and 1.0793. Higher for EUR/USD means breaks at 1.0617 and 1.0629 then 1.0649. A break of 1.0649 then 1.0660 and 1.0671. The significance of 1.0793 is its the 3 month forward line and will rise and fall all week as EUR/USD rises and falls. 3 month forward liners are offered by the ECB as gratis in all EUR/USD pairs and its the only central bank among the major pairs to offer such a feature.
Most important today in this series is 1.0617 and 1.0649. A price achieved at 1.0671 then sell target 1.0653. Failure to break 1.0649 then sell target is 1.0642 and 1.0643.
On the bottom side is today’s bottom and long point at 1.0586. A violation of 1.0586 can only see EUR/USD at 1.0569. The bottom side overall is fairly contained at 1.0586 and 1.0513 because 1.0480 and 1.0469 comes next. The ECB at least for today is not ready to allow EUR/USD in the 1.0400’s.
A long at 1.0586 targets 1.0612 and note 1.0612 is located just below 1.0617. Any price below 1.0586 must come back to cross 1.0586 and still target 1.0612. A long below 1.0586 is a market gift.
Overall the EUR/USD price at current levels is low and dead on the floor. Flat on the floor is a mathematacal connotation to mean EUR/USD has miles of upside but its price like all central bank exchange rate prices are strictly contained and made worse by the new structures in place since June 2016. Currency prices are designed to trade around events and news announcements and when no news exists then a price trades at its average and an untouchable place for a trade.
The entire interest rate curve is valued at 26 basis points and not bad for EUR/USD but only a Brexit event would see such prices trade. Today, its gifts from the Gods to see 13 basis points trade.

 

Brian Twomey, Inside the Currency Market, btwomey.com