Weekly Trades: EUR/GBP and EUR/CAD

EUR/GBP is severely overbought from the 5 day average, to the 50 day average, to the 253 day average, to the 5, 10 and 15 year average and to 4000 + day averages.

EUR/GBP overbought informs to the depth and degree of oversold GBP/USD. As mentioned in long term targets, GBP/USD broke big levels at 1.2998, 1.2892 and 1.2859 to achieve current 1.2700. On the way up, oversold GBP/USD must again break 1.2853, 1.2870 and 1.2928 to target 1.3000’s. The lower 1.2700’s GBP/USD drove EUR/GBP higher and this week the reverse will trade.

What allows GBP/USD higher are deeply oversold cross pairs as the GBP universe all now sits together in deeply oversold.
EUR/GBP is normally not a regularly traded currency pair because its a horrible currency and not worth clicks but a fairly easy trade is offered this week.

EUR/CAD is in the same overbought predicament as EUR/GBP and overbought from the 5 day average, 5, 10 and 15 year and overbought from 4000 + day averages. Long term target remains 1.5000’s.

EUR/GBP

Short anywhere or 0.9266 if seen to target 0.9051.
Short 0.8990 to target 0.8897.
Long 0.8897 to target 0.8959.
Long 0.9051 to target 0.9072.

EUR/CAD.

Short 1.5667 and 1.5682 to target 1.5525.
Short 1.5473 to target 1.5301.
Long 1.5525 to target 1.5595.

 

Brian Twomey

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