FX Next Week

EUR/USD bottom yesterday at reported 1.0638 traded to 1.0641 then longs to 1.0686 and perfect to the prescribed day trade time end at 10: am est. The 24 hour trade then dominates multiple longs and shorts for the next 6 to 7 hours. Yesterday’s 6 to 7 hour range traded 43 pips. Once the Fed releases interest rates then the game is pretty much over as ranges, supports and resistance points must re factor.

SPX traded 100 ish pips or 2X EUR/USD while WTI traded 1.63 points or actual traded nothing.

Best moves and best trades for maximum profits is at the start to any trade and applies to any financial instrument.

USD/JPY from Sunday’s post, solid resistance at 128.00 and 129.00’s. USD/JPY dropped this week from 128.08 to 126.00 lows. USD/JPY bottom side for next week is contained across the board at 125.00’s then vital 124.50. Next week range is located at 300 pips from 125.00’s to 128.00, 129.00.

GBP/JPY traded this week 289 pips from 161.00 to 157.00. The larger 1000 pip range is located from 148.00 to 168.00. Big break for lower is found at 158.96 however massive supports exist from 156.00 to 157.00’s.

EUR/JPY is the next leader to JPY cross pairs and replaced CAD/JPY for number top position. CAD/JPU also sits on massive and many supports from 96.00’s to 97.00’d against a big break at 97.51. Same story to EUR/JPY as vital break is located at 134.39 and much supports at 133.00’s to 132.00’s. Bottom supports for GBP/JPY, EUR/JPY and CAD/JPY are located at extremes and expected to hold next week.

CAD/JPY longs could trade easily to 100.00’s from current 98.00’s, EUR/JPY to 137.00’s, GBP/JPY to 162.00’s. Moves are expected at fairly normal trading especially as USD/JPY short ranges are containing JPY cross pairs from extreme or explosive moves.
EUR/JPY longs to 137.00’s informs automatically EUR/CAD to 1.3800’s from current 1.3600’s.

EUR/USD vital break is located at 1.0809 and current EUR/USD remains deeply oversold from 1.0500’s. Longs for next week to 1.0778 then 1.0793 to then challenge 1.0809. EUR/USD 300 pips are located from low 1.0500’s to 1.0800’s.

GBP/USD supports at 1.2300’s remain strong and solid. No difference from this week’s FX weekly post. Long targets to low 1.2800’s are at extremes. Range should located from 12300 to 1.2700’s.

NZD/USD big break at 0.6562 is now 0.6572. NZD/USD for RBNZ traded deeply oversold from low 0.6400’s to 0.6513 or 80 pips. Despite an 80 pips move, NZD/USD failed to break significant averages.

RBNZ 50 pip OCR change and NZD/USD 80 pip range is consistent to USD/CAD and BOC as well as GBP/USD and BOE. A 50 point change is valued at 80 pips and 30 pips more than normal 50.

Central bank announcements next week are known today and will be found within the expected 300 ish pip ranges for next week’s currency pairs as we head into a fairly normal trade week.

Brian Twomey

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