DXY Breaks 5 Year Average, G28, Gold and Yields

As written many times over months, DXY’s 5 year average at 95.25 broke lower today and dead stopped at 94.95 or the mid point from 95.25 and next vital level below at 94.70. To continue, DXY must break 94.70 then 94.20 and 93.71. The final bottom is located at 92.00’s and 91.00’s.


DXY’s break sent non USD higher to not only overbought but big levels approaches. GBP/USD next is 1.3715 and 1.3760. Short is the way forward.


EUR/USD


As written Sunday, EUR/USD broke 1.1387 and traded to 1.1422 target then continued higher to 1.1452. If DXY travels lower then EUR/USD targets 1.1473, 1.1509 and 1.1545. Below break at 1.1436 coincides to DXY 95.25. Below EUR/USD targets 1.1363 and 1.1290.

USD/JPY


Deeply oversold USD/JPY next below is located at 113.97. Failure to break, weekly target for longs remains 115.90 and 116.01. Target at 114.85 achieved however lows traded to 114.30’s.


AUD/USD and NZD


AUD/USD next above 0.7303, 0.7332 and 0.7351. Break lower at 0.7356 targets much lower. As written many times, NZD/USD big break 0.6840 and 0.6854. NZD/USD dead stopped 0.6856. Next above 0.6867. Watch overbought AUD/JPY 82.69 for lower and NZD/JPY 78.25.


GBP/JPY 157.00’s trades at the top of multi year range.


CHF/JPY 123.96 for lower.


USD/CAD V CAD/JPY


CAD/JPY remains deeply overbought to follow its brother AUD/JPY. Look for CAD/JPY target at 90.96. Deeply oversold USD/CAD same old story, 6 months later. Vitals remain at 1.2262, 1.2647 and 1.3026.

Gold


GOLD as written December 12 when Gold traded 1783. Gold traded to 1833 highs January 3rd and achieved lows at 1781 on January 7. Trade instruction Targets above 1805.10 and excellent short entries are found at 1818.48, 1864.53, 1874.58 and 1912.09.


Yields, 2, 5, 10 and 30 Year.


As written December 29, the 2 year range was located from 0.3376 to 0.8871.Above 0.8871, targets the range from 0.8871 to 1.2865. The 2 year achieved 0.9497.


The 5 year trades 1.0870 to 1.4927. Above 1.4927 targets an 8 point range from 1.4927 to the 5 year monthly average at 1.5744. Highs achieved 1.5565.


The 10 year traded a range from 1.4564 to 1.8095. Highs achieved 1.8060 and the range held.


The 30 year trades 2 ranges from 1.7987 to the 1 year average at 2.0261 then the 3 year at 2.0581 and 2.3126. Highs achieved 2.149.

DXY 95.25 is the overall driver to currency and markets

Brian Twomey