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As a complicated financial trading product, contracts for difference (CFDs) have the high risk of rapid loss arising from its leverage feature. Most retail investor accounts recorded fund loss in contracts for differences. You should consider whether you have developed a full understanding about the operation rules of contracts for differences and whether you can bear the high risk of fund loss.    

FX weekly — DXY and 14 currency pair levels and targets

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27

2023-12

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2023-12-27
Market Forecast
FX weekly — DXY and 14 currency pair levels and targets

EUR/USD and SPX 500 trade patterns from 2021 to 2003 ran simultaneous as 8 up months Vs 4 down months. The pattern turned slightly in 2020 as 6 up months for SPX to 6 down months as EUR/USD traded 7 up months to 5 down.

In 2019, the EUR/USD and SPX patterns completely deviated as SPX traded 10 up and 2 down while EUR/USD traded 5 up months to 7 down.

From 2015 to 2018, EUR/USD and SPX returned to a 1 and 2 month lead and lag time to up and down months. In 2018, SPX traded 8 up months to 4 down while EUR/USD resulted in 6 up to 6 down.

In 2017, SPX traded 10 up months to 2 down and EUR/USD 9 up to 3 down. The SPX and EUR/USD relationship in 2016 deviated to a 2 month lead and lag by SPX 7 up months to 5 down and EUR/USD5 up to 7 down.

In 2015, SPX and EUR/USD  returned to the 1 month lag seen in 2020 and 2017 as SPX traded 5 up months to 7 down while EUR/USD resulted in 4 up months to 8 down.

The week

EUR/USD for the week approaches 2 big levels at 1.1055 and 1.1057. EUR/USD overall range trades 204  pips from 1.1057 to 1.0853. EUR/USD larger range to hold for next months is found at 1.0592, 1.0685, 1.0881, 1.1057, 1.1273, 1.1521.

EUR/USD trade deeply overbought from 1.0800’s and lower averages and targets 1.0898 and 1.0871.

USD/JPY and JPY cross pairs trade massive oversold and USD/JPY targets lower 144.00’s.

Overbought GBP/USD trades 220 pips from 1.2563 and 1.2578 to 1.2783.

AUD/USD for next months trades 0.6611, 0.6772, 0.6949, 0.7226 and 0.7449. AUD/USD averages are located bout every 200 pips and offers an excellent weekly trade plan over next months.

NZD/USD trades overbought and just above its vital break line at 0.6273. A break lower places NZD/USD in a range from 0.6126 to 0.6273. Upon a correction, a higher NZD/USD above 0.6273 places the new range at 0.627 to 0.6460.

USD/CAD trades 1.3211 to 1.3320. EUR/CAD averages are many and massive from 1.4500’s to 1.4400’s.

GBP/CAD trades deeply oversold. GBP/CAD in the CAD category is the only trade worth the trouble as GBP/CAD ranges are wide in comparison to EUR/CAD, AUD/CAD and NZD/CAD.

EUR/AUD and GBP/AUD both trade oversold. EUR/AUD trades just above vital lines at 1.6087 and 1.5937.

GBP/NZD and EUR/NZD trade oversold as all wide rangers trade oversold and in contention to overbought anchor pairs. EUR/NZD trades just above 1.7369 and 1.7148.

Recall the700 and 800 pip  long term trades for wide range currencies. Once targets completed, prices became settled into dead ranges. Wide rangers maybe oversold currently but all also trade in dead ranges.

The 2 year cycle highlighted in the beginning of the year is only 1 year into the 2 year cycle. Prices in 2024 will build again in order to trade many more 700 and 800 pip trades easily and effortlessly. Until then, we are forced to work for the money.

EUR/CHF, GBP/CHF and CAD/CHF trade deeply oversold and matches oversold to USD/CHF.

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