The week ahead

EUR/USD, AUD/USD and NZD/USD enter the week deeply overbought while USD/JPY sits at perfect neutral which means no significant moves to JPY cross pairs despite overbought, a short only strategy and heading lower over time.

GBP/USD and GBP/JPY are viable short trades this week as well as oversold USD/CAD and overbought CAD/JPY. GBP/USD and USD/CAD ranges are holding well. EUR/AUD is a good trade selection yet caution to GBP/AUD.

EUR/USD breaks 1.1935 and heads lower or USD/JPY trades below 107.83 and targets lower levels.  A EUR/USD break at 1.1935 then USD/JPY targets 110.00’s.

Emerging Markets

Deeply oversold USD/BRL breaks below 5.5769 to target 5.5535 or trades higher to target 5.6472. Longer term, USD/BRL remains miles overbought.

Oversold USD/DKK must break 6.2330 to target 6.2459. Long this week at 6.1977 and  1.2009 to target 6.2266.

USD/HUF must break 302.12 to target 303.05. Long 300.73 and 300.50 to target 301.66. Not much to USD/HUF.

USD/MYR fairly neutral, short 4.1333 and 4.1358 to target 4/1210.

Deeply oversold USD/RON breaks below 4.1054 to target 4.0907 or trades to 4.1275 easily.

USD/RUB closed at 75.82 and at a significant inflection point. Below targets 74.88 and above targets 76.38.

USD/TRY lower must break below 7.8599. Long to target 8.1241 and 8.1396 then short 6.1396 to target 7.9842.

USD/HRK, Croation Kuna

Long 6.3079 and 6.3114 to target 6.3323.

Trade Idea of the week

USD/ZAR Deeply oversold ZAR long from 14.30 and 14.20 range with targets 14.4959 easily. USD/ZAR easily represents our trade idea of the week