FX Weekly: Neutrality, 2 and 300 Pip Ranges

Currency markets to include 18 currencies attained the status of neutrality inside 2 and 300 pips ranges.

Neutrality not only began 2 weeks ago but satisfies weekly and long term perspectives. The vast majority of currency prices traded 700 pips last month and once the month concluded then range trading became the norm to last for weeks to possibly months.

Normally required are range or vital MA breaks to begin a trend however if vital MA breaks trade then currency prices only move to new 2 and 300 pip ranges. Exchange rate numbers may change but not the situation to neutrality or 2 and 300 pip ranges.

For 18 currency pairs trade in a holding pattern as overbought or oversold fails to exist. Currency market drivers are clearly USD V non USD currencies as EUR/USD, GBP/USD and USD/JPY. All are the big 3 to recommended trades over the next month followed by JPY cross pairs as EUR/JPY and CAD/JPY.

GBP/JPY is the outlier as no trade signal exists except for shorts below 162.00′ s to target again 159.00’s. Lows for January is expected 156.46 against deep caution to 156.10.

EUR/JPY targets 134.34 and caution at 135.18 while CAD/JPY targets 94.37 with caution to 95.33
AUD/JPY’s big break for lower is located at 86.90 and targets 88.69 and 87.99.

EUR/USD and GBP/USD trade as a long only strategy and short for USD/JPY and JPY cross pairs. EUR/USD and GBP/USD long only is due to long term targets at 1.1001 and GBP/USD at 1.2700’s provided EUR/USD breaks above 1.0852 and GBP/USD trades above 1.2500’s.

USD/JPY short only is derived from targets at 129.00 and 128.81 however USD/JPY sits above the 125.00 line and no changes to this line over the past month.

GBP/AUD also trades as an outlier as GBP/AUD from 1.7500’s must trade to 1.7700’s then short.

EUR/NZD is the preferred trade to GBP/NZD while GBP/CAD is the best trade to EUR/CAD.

Overall, EUR/USD, GBP/USD, USD/JPY and JPY cross will dominate trades over the next month and offer best profits.

Brian Twomey


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