USD/CAD V CAD/JPY: Levels, Ranges, Targets

Last month’s currency prices and pairs performed exceptional at 300 to 600 pip movements and this month either settled prices or certain currency pairs trade in slight correction mode. Slight so far is the operable word as it applies to USD/CAD, CAD/JPY, AUD/JPY. Slight was the market order suspected as the search continues for new trades. GBP/NZD is on deck as it rose almost 300 pips since Friday’s post and its about ready. Again, the criteria is +100 to 150 pip or more trades.

On the NAFTA front, its quite extraordinary to even see slight movements in USD/MXN and an utterly dead pair in CAD/MXN. So dead is CAD/MXN, it makes the analyst’s CAD/CHF look like a volatile pair. I might post the combo to define dead as it was suspected a NAFTA deal would reveal great trades. It doesn’t.

The Bank of Mexico learned the new central bank art of interest rate manipulation as TIE rates trade in utter dead zones. A once great and volatile pair in USD/MXN coupled with 1000’s of pip movement abilities now sadly trades like the EUR/USD and USD/JPY relationship.

Ongoing trades remain in AUD/NZD, EUR/CAD and GBP/CAD. AUD/USD is complete and review comes at 0.7836.
AUD/JPY on RBA dead stopped at previously reported 83.06 and offered trade at long 83.05 on RBA would target 83.75. The trade achieved + 27 so far. I remain not interested in AUD/JPY yet. I saw doves upon doves coming from the RBA and revealed through AUD/USD and AUD/JPY prices.

GBP/CAD Friday was a perfect trade set up and entry but positions traded 40 and 50 pips on either side of vital 1.8038. From a daily view, prices performed correctly. The trade remains ongoing but fails in consideration of success and its the 1st among 35 + trades. GBP/USD requires a correction as USD/CAD sits in dead ranges. A lose doesn’t exist in currency trading. At worst in any trade is break even.

As USD/CAD and CAD/JPY are offered, no interest in trade criteria exists at current prices.

USD/CAD trades between its vital break points from 1.2675 and 1.2521. Vital is 1.2521 because next comes 1.2357 then a good possibility for a run to the 5 year average at 1.2219.

Above, USD/CAD contains serious problems from 1.2540 to 1.2605 as this represents a deep dark gray area. At 1.2606 then 1.2648 is required to break to target the most important point 1.2685. The best achieved by a 1.2685 break is 1.2735 then solid at 1.2800.

USD/CAD’s best approach is in sell rally mode.

CAD/JPY longs remain good as long as prices remain above 85.15. The next upside target is 86.29 and 87.00’s are solidly blocked.

If 85.15 breaks then target is a good long point at 84.42. At 84.42 is an excellent long to target 85.15 and above.

CAD pairs as seen in USD/CAD, CAD/JPY, CAD/MXD and CAD/CHF trade in dead ranges. CAD dead ranges match AUD pairs and its suspected the same will be seen in NZD pairs. Next comes EUR and GBP and then possible Central Europe in PLN, INR.
Brian Twomey