Weekly Trades: EUR/USD, GBP/AUD, USD/JPY, GBP/CHF

This week’s focus encompasses 2 interesting and vital currency pairs: GBP/AUD and USD/JPY.

GBP/AUD in March traded 2.0800’s and last week achieved 1.7900 lows. GBP/AUD at a 2900 pip drop far surpassed the allowable 2500 pip statistical boundary criteria built in for a vast majority of our 28 currency pairs.

GBP/AUD violated the 2500 pip boundary by 400 pips and sits in a massive range from 1.7700 lows to 1.9300’s. Current GBP/AUD at 1.7900’s as traded last week and 1.7700’s multi year range lows, offers an extraordinary long term long trade.

The context to a long term trade coincides to newly updated targets for GBP/USD at 1.3100’s, GBP/CHF at 1.2600’s and GBP/JPY at 141.00’s. GBP/AUD as a wide range currency pair within the GBP universe is consistent to GBP/CAD at multi year range lows at 1.6900’s.

Add the 400 pip violation to 1.7700’s offers a 1.8100’s target. The 2 big points higher must break 1.8170 and 1.8291 then GBP/AUD contains much daylight between 1.8200’s and its next significant points at 1.8400’s and 1.8500’s.

USD/JPY at current 106.00’s is again at critical 4 year lows at 105.00’s and 106.00’s. Nothing changed for USD/JPY to 105.00’s and 106.00’s bottoms as a significant bounce was seen each time 105.00’s and 106.00’s traded. Many forecasts were devoted to 105 and 106 bottoms over the past 3 years.

Current crucial lows for USD/JPY resides at 106.48, 105.98 and 105.87. USD/JPY closed at 106.84. A break of 105.87 targets 102.00 lows. Higher must break 107.66, 107.77, 107.90 then targets 108.70 easily.

Weekly Trades

EUR/USD

Short 1.1219 and 1.1241 to target 1.1138.
Short below 1.1124 to target 1.1005.
Long 1.1005 to target 1.1064.

Long 1.1138 to target 1.1212

USD/JPY

Long 106.57 and 106.68 to target 107.51.
Long 107.77 to target 108.46.
Short 108.46 to target 107.90.

GBP/AUD.

Strategy. Long 1.8028 and 1.8001 to target 1.8390

GBP/CHF

Long 1.1734 and 1.1701 to target 1.2009.
Long above 1.2057 to target 1.2151
Short 1.2009 to target 1.1922.

 

Brian Twomey