DXY V Corn: Levels, Ranges, Targets

 

DXY price at 97.21 is not only at uppermost range highs but it warrants a deep correction. Problem with correction is DXY is well supported at 95.92, 95.54, 95.39 then 94.34 and 94.13. Only a break at 94.13 would see a deeper move lower to 91.97 and 90.39.

Best DXY correction is located at 96.89 and 96.79 and lower is required to challenge 95.92, 95.54 and 95.39. Overall, DXY ranges is located from 95.92 to 98.00’s but don’t push your luck at 98.00’s.

The best shorts on a sell only strategy is 98.62, 98.78 and 98.81 to target 96.89 and 96.79. Short only strategy because DXY’s current price is to high and its impossible to trade long. This short only condition in currency pairs and DXY in particular may last for many many months and DXY is no different from the 28 major pairs.

Overall, DXY isn’t worth the trouble to even consider a worthy trade as far more better pairs exist to consider. GBP for example is currently running on all cylinders and all GBP pairs are great considerations.

DXY Vs Corn Correlations from monthly averages 1 to 5Y as follows: 0.29, 0.02, 0.05, 0.02 and 23%. From 5 to 10 year averages barely achieves 50% correlations. While DXY’s price is to high, Corn’s 356.62 price is to low but Corn faces many hurdles to travel higher from 361.32, 364.45, 369.36 and up to 392.79.

Above 392.79 is required to challenge 439.18 and 467.41.

Ther perfect long point is located at 338.66, 341.88 and 344.09 to target 350.07 and 354.02. Overall, Corn contains its widest ranges from 320.00’s to 600.00’s and the overall strategy is buy drops as 320.00’s is only 36 points from range bottoms.

 

Brian Twomey

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