FX Weekly: EUR/USD, DXY, GBP, JPY Trading Opportunities
Brian Twomey | Sep 11, 2022 07:19AM ET
Severely overbought JPY cross pairs begin the week. USD/JPY adds to the overbought ranks due to DXY trading near 40 and 50-year monthly averages.
The DXY venture began 16 months ago at 89.00 lows in May 2021 to travel to 110.00 highs. In 16 months, 12 monthly candles were solid green, and one Doji at the vital 95.00 MA.
DXY supports are located next at 107.74, 106.20, 104.56, 103.74, 102.92, 102.66, 102.28, 101.36 and 100. DXY 109.59 becomes vital to trade higher to 110.00 and 111.00’s.
Overall, DXY still trades in 100, and 200 pip ranges to inform currency market price moves won’t see violent up and down swings. DXY traveled higher from 89.00’s by 125 pips per month, which is expected long into the future.
Best trades for profits are EUR/USD and USD/JPY as EUR/USD trades massive oversold Vs. richter scale overbought to USD/JPY. The best cross pairs are EUR currencies and JPY.
Overbought JPY cross pairs this week are expected about 200 pips lower. Trade order begins as GBP/JPY and EUR/JPY then CAD/JPY, AUD/JPY and NZD/JPY. JPY cross pair trades represent corrections from deep overbought until GBP/JPY breaks 162.63 and EUR/JPY 138.81.
Currency markets radically change the trend when USD/JPY breaks below 136.00’s and EUR/USD above 1.0200’s.
h2 GBP Trade Ranking/h2GBP/USD, GBP/JPY, GBP/AUD, GBP/CAD, GBP/CHF, GBP/NZD. All GBP currencies begin the week deeply oversold to, include GBP/NZD.
The GBP/NZD oversold problem is EUR/NZD trades massively overbought. EUR/NZD for past weeks been trading 100 and 150 pip days. EUR/NZD should trade easily double 100 and 150.
h2 Trade Rankings/h2EUR/USD, EUR/JPY, USD/JPY, AUD/JPY, CAD/JPY, NZD/JPY, CAD/CHF, EUR/NZD, EUR/CAD, NZD/USD, AUD/USD, AUD/CHF, NZD/CHF, USD/CAD, EUR/AUD.
EUR/USD targets 1.0140 while short to USD/JPY and JPY cross pairs. Oversold NZD/CHF will lead NZD/USD higher. EUR/AUD higher matches oversold GBP/AUD. Watch EUR/AUD 1.4748 for trade much higher.
h2 EM Currencies/h2DXY at 40 and 50-year averages most affected USD/EM to trade to overbought tops. Best shorts are located in USD/BGN, USD/DKK, USD/HUF, USD/TRY.
USD/BRL and USD/ZAR are working off overbought and heading to neutrality. Brazil and South Africa are members of the BRIC alliance (Brazil, Russia, India, and China).
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