Weekly Trades: EUR/USD and NZD/USD

Drivers and direction to Currency markets for the past weeks are USD and Non USD currency pairs. Those pairs currently determine cross pair direction. Certain weeks and periods, cross pairs drive USD and non USD but not this week nor for the past 4 weeks.
Not much excitement exists in this weeks currency prices as ranges are compressed and further compressing. Currency pair trade selection is key as not all currency pairs will perform as past weeks.


Central bank statements to not raise rates for years brings with it a slowdown to price speeds and range compression as interest rates are the primary drivers to currency prices from the 1972 free float inception to present day.


This week EUR/USD and NZD/USD will offer as weekly trades. Its a bottom NZD/USD Vs a top EUR/USD type trades. NZD/USD contains the lowest exchange rates among 65 + currency pairs. If the bottom falls then all currency pairs fall and it includes EUR/USD.


EUR/USD


Short 1.1825 and 1.1848 to target 1.1662
Short below 1.1639 to target 1.1499
Long 1.1499 to target 1.1566
long 1.1662 to target 1.1756.


NZD/USD


Short 0.6671 and 0.6687 to target 0.6579
Short below 0.6565 to target 0.6459.
Long 0.6459 to target 0.6539.
long 0.6579 to target 0.6644

Brian Twomey

Weekly Currency Pairs Order of Operations

Clear drivers and leaders to Currency markets over the past 4 ish weeks are USD Vs Non currency pairs. Non USD currency pairs are EUR/USD, GBP/USD, NZD/USD and AUD/USD Vs USD/CAD, USD/CHF and USD/JPY. Non USD currency pairs all trade above respective MA’s while USD pairs trade below.


The Non USD Vs USD lineup is correct. The correct lineup and sufficient ranges is what drove trades over the past month as clear long and short points were identified. Trades in USD Vs Non USD was the only trades of any profit value and the same situation exists in the current week. The same circumstance may exists for many weeks to come.


The non drivers and non leaders to Currency markets over the past 4 ish weeks are currency cross pairs in the universe of USD vs Non USD.


Viewed from EUR top and NZD bottom currency pairs, its obvious why cross pairs aren’t moving nor trading correctly and its due to cross pair mis positions.


NZD


NZD/USD trades above MA’s.
NZD/JPY trades above 69.56 by 2 pips.
NZD/CHF Trades below.
NZD/CAD trades below.


2 pairs trade above and 2 pairs trade below. This situation is clearly enough to compress ranges.


NZD/CHF for example is a dead issue to ranges due to its position between NZD/CAD and NZD/JPY. NZD/CAD’s correct position is above all NZD pairs and should be the first currency pair shown. NZD/CAD as first position and top currency pair drives the NZD universe. NZD/CHF’s correct position is bottom pair. When NZD/CHF assumes its correct position as bottom pair then it trades correctly and in its proper ranges. NZD/JPY lacks a clue to direction as it can easily fly either way. NZD/USD exits as the only clear trade.


EUR


EUR/USD trades above
EUR/JPY above by 12 pips
EUR/CHF below
EUR/CAD below
EUR/NZD Below by 2 pips
EUR/AUD above
EUR/GBP above.


EUR/USD is clear driver and only trade beside EUR/AUD. Ranges severely compressed as EUR/USD must decide the fate of its cross pairs.


GBP


GBP/USD trades above
GBP/JPY below
GBP/CHF below
GBP/CAD below
GBP/NZD below

GBP/AUD above by 3 pips. Ranges went into severe compression mode.


AUD


AUD/USD above by 2 pips
AUD/JPY below
AUD/CHF below
AUD/CAD below
AUD/NZD below


Ranges in AUD are good in relation to its counterparts and sufficient enough to see a good move for this week’s RBA announcement.


USD/CAD trades below its vital MA;s but contains excellent ranges.


EUR/USD, USD/CAD and AUD/USD contain the best ranges to trade this week as USD Vs Non USD drives this week markets.

Brian Twomey