USD/CAD is not only miles oversold but USD and CAD yield curves are inverted. As will be seen in today’s feature, yield curves are inverted in EUR, GBP, USD, AUD, NZD, and CHF. In JPY, the yield curve flat lined. No telling if the BOJ experiment works or will prove fruitful in the future. Based on past experiments, the BOJ current run fails miserably.
USD/CAD. Break points 591 day average 1.3148 and 335 day average = 1.3182. Then 1.3206 and 1.3402. Below 1.2600. Better longs than shorts in USD/CAD. Also, USD/CAD is the big USD mover in relation to USD/JPY and USD/CHF. USD/CAD beats USD/JPY by easily 10 pips in daily movements and 20 pips Vs USD/CHF.
USD/CHF. Break points 0.9768, 0.9840 and 0.9907 Vs 0.9524. Currently oversold. Extreme sell points 0.9682, 0.9714 and 0.9826 and 0.9841. Informs 0.9768 has a shot to break but 0.9840 holds. Extreme long points 0.9604, 0.9541, 0.9536 and 0.9502.
USD/JPY. Break points 112.33 and 111.38. USD/JPY is miles overbought from break points and short term averages. I can’t stress enough our economic world, trends and every market movement on the planet is dictated by the relationship in EUR/USD, EUR/JPY and USD/JPY.
Extreme sell points 114.31, 114.62, 114.91 and 115.00. Extreme long points 112.48. A break at 111.38 then comes 110.75 and 109.45.