MID Week: EUR, GBP, AUD, JPY, NZD

Point of note to yesterday’s Gold / Currency trades was not only +92 points but completed in a total of 12 trades and structured as day trades. All financial instruments as day trades must structure as day trades to know what to trade, where and when.


If Norway’s stock market as the benchmark OSE was traded for its total of 6 points today, then 6 points must find its structure. The Oslo OMX 20 traded today so far 8 points. Those 8 points must be structured to profit from the 8 points. Silver yesterday traded 25.48 – 24.82 or 0.66 points. Set up as a day trade, then comes profit.


Knowledge of the financial instrument traded doesn’t matter a hill of beans. Anyone can trade for example the stock market Index in Cucamonga or a single stock in Cucamunga and profit as long as the structure is right.


USD/JPY and the Repair Trade


USD/JPY’s weekly target traded to 114.96 or 67 points off kilter. What a blessing. Rare for such wrong but the strategy is add 1 lot.


The choices are trade the extra lot to breakeven then exit with profit. Exit both lots with profit on the 2nd lot and breakeven on the first lot. Exit the 2nd lot with profit and continue to trade the first lot to target. Or trade both lots to target. Never a loss as target is the trade. Lost is time but never profits. Entries are secondary to targets.


USD/JPY is massively overbought short. medium and long term from the 5 year average at 109.00’s and this richter scale overbought status won’t hold.


EUR/GBP = 0.8507, and 10 and 15 year averages at 0.8426 and 0.8401. EUR/GBP broke below and traded to 0.8388 lows. EUR/GBP’s drop assisted EUR/USD to travel lower and higher for GBP/USD and all GBP cross pairs. EUR/GBP is not the pair to trade but currently stands massive oversold to match oversold

EUR/USD.


EUR/GBP is the currency pair to hold EUR/USD and GBP/USD prices in place and prevents EUR/USD and GBP/USD to trade to outer space limits. From current EUR/USD and GBP/USD, EUR/GBP trades from 0.8839 to 0.7438.


GBP/AUD and GBP/NZD were this week’s winners as both traded 250 pip higher. GBP oversold as written Sunday was the best category to trade and all GBP pairs traveled higher. From 19 currency pairs traded weekly, does 60 pips make a difference to USD/JPY. Not when 19 pairs trade to targets and profits.


EUR/USD from 1.1490, traded to 1.1262 or 228 pips. EUR/USD target is located at 1.1016. Today’s EUR/USD day trade bottoms are located at 1.1244 and 1.1252 Vs highs at 1.1329 and 1.1358. EUR/USD contains a bit more downside then long for longer terms. The driver to EUR are deeply oversold averages from 1.1500’s to 1.1800’s.


USD/CHF and CHF/JPY traded richter scale overbought to richter scale overbought. Both good shorts for a few day trade pips.


GBP/JPY sits overbought and GBP/USD remains oversold with upside potential to 1.3559 for the week and 1.3499 for today’s day trade. GBP/PY overbought and GBP/USD oversold is a problem situation which informs next week, we leave GBP to top rankings.


AUD/USD 0.7309 remains a giant break while NZD/USD 0.6846 sits yet to break. NZD/USD and NZD cross pairs like USD/CHF and EUR/GBP is not the pair to rush and trade until NZD/USD assumes a correct position and range. AUD is not only the better pair to trade but AUD has been steady and profitable over the past 4 weeks and no changes seen over next weeks.

Brian Twomey

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