relationship. EUR/USD traded 120 pips this week to 102 for DXY. Neither DXY nor EUR/USD broke significant levels as both are trading inside small and meaningless ranges. Powell offered barely a 40 pip response to yesterday's Fed meeting.
The overall trade strategy remains long EUR, GBP, AUD, NZD Vs short DXY, USD, USD/JPY unless DXY trades a clean break at upper 105.00's.Recall targets on August 13, GBP/AUD traded 1.9500's, long term targets 1.8841 and just the beginning to targets at 1.8600’s and 1.8500’s. GBP/AUD traded 1.9053 lows and 500 pips.
Massive oversold GBP/USD targets the break at 1.2521 to trade the range from 1.2521 to 1.2646 and 1.2847. GBP's long term targets remains 1.2731.Lower for BOJ expected. Friday is a horrible day for BOJ as big interest rate changes occur. Next week, USD/JPY trades 149.72 to 147.87. No changes to USD/JPY this week as 100 pips traded and barely 175 pips is expected next week.