FX Next Week

DXY at 105.16 is up against averages next week at 105.34 and 105.76. Longer term 106.56, 107.37, 108.33, 108.71 and 109.09. DXY traded to 105.34 then dropped. Next levels below are located at 104.65 and 104.45 then targets at 103.21 and 103.03. DXY requires the break at 104.45 to continue its downside projections to challenge 96.00’s and 95.00’s.

Thank you to all at FxStreet.

USD/CAD traded 311 pips last month from 1.3701 to 1.3390. From the December 13th post, USD/CAD traded highs at 1.3641 then 3 days later to 1.3701 and to lows at 1.3472 yesterday.

From December 13, USD/CAD actually traded 229 pips from 1.3701 to 1.3472.

USD/CAD targets from last month 1.3346, 1.3238, 1.3203 and 1.3082.
USD/CAD targets this month: 1.3426, 1.3359, 1.3292, 1.3243, 1.3181.

USD/CAD trade strategy remains short to target 1.3200’s. A break at 1.3485 will see CAD much lower and much quicker.

Next Week

USD/JPY requires a break at 134.20 to then target 132.52. Lines at 136.00’s dropped to 1.3588 and continues the long slide lower.

GBP/JPY 163.00’s also drops to 162.00 and specifically 162.09, above targets 164.00’s. Oversold next week begins at low 158.00’s.

EUR/JPY must hold below 141.50 to target 140.13 easily.

AUD/JPY must trade below 91.39 and NZD/JPY 84.29. CAD/JPY trades between 99.19 and 97.59.

GBP/USD oversold begins at 1.1802 and higher requires a break above 1.1938.

AUD/USD hold a die or die position at 0.6731 and NZD/USD at 0.6210.

EUR/USD remains the outlier to AUD, NZD and GBP at 1.0424.

GBP/USD was first to break to lead AUD, NZD and EUR/USD lower.

EUR/NZD traded to tops at 1.6937 yesterday and 1.6934 today. Once EUR/NZD ranges are firmly established, ranges hold for many weeks to allow continuous longs or shorts. For EUR/NZD since December, 1.6900’s tops offered many shorts and will last all January.

EUR/AUD trades to 1.5300’s and 1.5200 target on a break of 1.5486. EUR/AUD is similar to EUR/NZD as ranges once established hold for many weeks to offer multiple longs and shorts.

Overall currency markets trade in a fairly neutral position and waits on the DXY resolution to break 104.45 or 105.34 and 105.76.

Brian Twomey