Currency prices in the last few weeks traded and currently trade around 5 and 10 day averages and this informs price moves are fast and short term. Why trade around 5 and 10 day averages is because far distance exists from the 10 to next 20 day averages. EUR/USD 10 day at 1.1206 factors to the 20 day location at 1.1123. Today’s EUR 5 and 10 day remain the same as yesterday at 1.1197 and 1.1206. Zero progress in the averages was made in the last 24 hours.
NZD/USD is another example as the 5, 10 and 20 align as 0.7072, 0.7046 and 20 day at 0.6970.
The question how a short term math model stacks against an interest rate trade was the purpose for yesterday’s involved post. Longs were established, the question was targets. We went to 1.1226, reversed and exited against plenty of earned points. We were done and safely. The key word for interest rates is safety as levels, ranges and targets are known long in advance while the math model offered targeted possibilities. Yesterday’s danger zone to trade long was 1.1230 to 1.1248 resistance against out of bounds at 1.1237. The further warning was 1.1248 traded outside our trade time.
Today’s EUR/USD dead stopped at 1.1258 and reversed. The targeted possibilities were 1.1249, 1.1258, 1.1260 and 1.1269. My point was 1.1261 then reverse. Yet overall, EUR has easy possibilities to achieve 1.1280’s later in the day. The difference between both models is interest rates are highly involved, detailed against many nuances. Once mastered, every and all market prices on the planet are predictable. It teaches the deep insides to a price. A math model is easy and requires a few clicks on a calculator. Its much preferred these days
GBP/USD. Vital points for today, 1.2801, 1.2823, 1.2873, 1.2894 and 1.2934. The big line falling on GBP above is 1.2975.
AUD/USD. Highly oversold for AUD and most vital above are located at 0.7478 and 0.7555.
NZD/USD. Current price sits above vital supports at 0.7025 and 0.7014.
GBP/JPY. Current price at 143.25 hit today’s target at 143.24. GBP/JPY must now cross below 143.12 for further short gains. Above 143.12, the range becomes 143.12 to 144.14. Below 143.12, next points are located at 142.34 and 142.09.