DXY at current 90.04 trades below the 10 year monthly average at 90.24 and is oversold on a long term basis. The position informs automatically a low and oversold price. The 11 and 12 year averages is unknown as normally market prices rarely trade below 10 year monthly averages.
Fairly common is oversold at 7 and 8 year monthly averages and this applies to all market prices.
The number 7 is an important number in financial markets as it represents not only a cycle high but its ordained in the bible from Genesis 41 to represent life cycles as 7 rich years and 7 lean years. Money comes easy in 7 rich years while struggles are seen in 7 lean years.
The number 7 to DXY applies at 94.55 and a vital number to lead next to the 5 year average at 95.53 and a host of averages at 95.00’s. The next break above are found at 91.57, 92.89, 93.70 and 94.55.
DXY’s bottom today for the day trade is located at 89.60 and top at 90.52. The larger range for DXY is located from 89.29 and to 90.90. DXY’s daily range is quite dead and dull and matches EUR/GBP. Neither are enthusiastic to trade.
DXY bottom at 89.60 will match EUR/GBP at 0.8584 and DXY top matches EUR/GBP at 0.8672.
Far worse to trade is WTI as DXY and EUR/GBP ranges exceed WTI.
However to follow the USD theme for Commodities, WTI bottom is located at 67.75 and top at 68.45. Bottom must break 68.02. The larger range is located at 67.56 to 68.96. The 8 month range from 33.72 to 68.13 contains a mid point at 50.92 and monthly average range at 4.3 points.
Brent is the exact circumstance as WTI due to not only the same ranges but slow and dead movements and DXY and EUR/GBP ranges exceed Brent and WTI.
The S&P’s bottom today is located at 4181.02 and top at 4223.06. Practically the same trade as DXY and EUR/GBP. The larger S&P range is located from 4129.10 to 4276.25.
Nasdaq Bottoms today at 13667.79 and tops at tops at 13805.17.
Brian Twomey
BRIAN TWOMEY ON TRADING 