In September 2022, EUR/USD Vs DXY achieved its maximum peak distance at 1935 pips when DXY traded 114.00’s to EUR/USD 0.9540. The EUR/USD Vs DXY relationship today was slashed by 1/2 to 889 pips at EUR/USD 1.1017 to DXY 101.28. EUR/USD V DXY each traveled 241 pips in each of the 8 months since September’s Peak.
DXY traded 1395 pips lower to 100.83 while EUR/USD traveled 1555 pips higher. Measured from the vital 1.0500 line that held throughout the EUR/USD V DXY relationship since September 2022, EUR/USD actually traded 500 pips to DXY 500 pips. DXY broke below first in November 2022 while EUR/USD followed 1 month later in December 2022.
Since the 1.0500 break, EUR/USD and DXY actually traded roughly 100 pips per month in each of the past 5 months. The EUR/USD Vs DXY relationship slowed substantially to a crawl and trades today in a dead range zone. And no end in sight.
USD/JPY traded 1096 pips on the EUR/USD Vs DXY 1.0500 break from 138.16 to 127.20 or 500 pips in each of 2 months. Since, USD/JPY traded 127.20 to 137.90 and 2 months later or 535 pips in each of 2 months.
Since January, GBP/USD bottomed at 1.1840 and traded 817 pips to 1.2651 or 202 pips per month in each of 4 months.
Measured from the EUR/USD VS DXY relationship at 100 pips per month, GBP/USD traded 2 X to the 100 pips while USD/JPY 5 X’s. USD/JPY is clearly the loose cannon within the currency mix and no end in sight.
Trade from EUR/USD transfers to GBP/USD and USD/JPY as the preferred currencies for easily the next month or longer.
EUR/USD Vs DXY
EUR/USD 1.1106 Vs DXY 100.39
EUR/USD 1.1150 Vs DXY 99.95
EUR/USD 1.1239 Vs DXY 99.06
EUR/USD 1.1462 Vs 96.84
EUR/USD 1.1684 Vs DXY 94.61
EUR/USD 1.1906 Vs DXY 92.39.
USD/JPY Vs EUR/USD
USD/JPY 137.27 Vs EUR/USD 1.0771
USD/JPY 138.51 Vs EUR/USD 1.0647
USD/JPY 140.97 Vs EUR/USD 1.0401
GBP/USD Vs USD/JPY
GBP/USD 1.3566 Vs USD/JPY 1.2542
GBP/USD 1.3609 Vs USD/JPY 1.2499
GBP/USD 1.3695 Vs USD/JPY 1.2414
GBP/USD 1.3908 Vs USD/JPY 1.2200
GBP/USD Vs DXY
1.2877 Vs DXY 98.78
GBP/USD 1.3032 Vs DXY 97.53
GBP/USD 1.3252 Vs DXY 95.03
Brian Twomey
BRIAN TWOMEY ON TRADING 