USD/CAD 1.2629 achieved and next week

USD/CAD as written Sunday achieved target at exactly 1.2629. Last week, USD/CAD achieved target at exactly 1.2629 as both trades for the past 2 weeks were the exact same.

From long 1.2629, USD/CAD achieved target at 1.2661 for +32 pips. As written Wednesday to week beginning, USD/CAD contained 2 long options.

USD/CAD prices for 2 weeks ran non normal as an extra lot short was forced upon us last week. Same story this week as USD/CAD traded to 1.2773 from short `1.2713. Extra and unexpected pips were added to profits in each of 2 weeks.

Non normal prices. As all daily, weekly and long term trades are factored by pen, paper and calculator, I’m able to look back to find the vast majority of weeks, months and years, markets trade perfectly normal and trades achieves entries, targets and destinations perfectly. The assist to weekly trades are daily trades and a rare day for a daily trade to not trade correctly as daily trades are derived from central bank interest rates.

However, within a 3 month period, we seem to have at least 1 trade week when markets run non normal, sometimes 2 weeks but this is rare. Non normal markets mean USD and non USD currencies trade at extremes to each other as is the present situation. A larger picture exists to overall prices and on this erradic price week, 5 year averages are the answer.

If markets are focusing on a test or possible break to the average then weekly trades will be thrown off course. Off kilter in today’s markets mean entries off by 50 and 60 pips and rarely more. When USD and non USD currencies trade at extremes, they always correct back to normality. Its impossible mathematically not to trade back to normality because currency prices are inter loacked.

If markets traded non normal constantly then not even the central bank professionals would trade as prices would trade to erratic to pinpoint correctly entries and targets.

This is where the extra lot becomes free and extra money added to the target. The imperative is to understand the price context by location.

So if a trade was missed this week means an extra day or 2 to holding periods as markets trade back to normal and targets always achieve destinations.

USD/JPY for example above 110.34, traded non normal to 112.00’s. Great opportunity short but impossible to trade long. Above 110.34 then means let the price run its course as the easy money trade is found in shorts. Its impossible to trade an overbought currency long or oversold currency short.

Provided EUR/USD 5 year average holds then EUR/USD trades to the vicinity of 1.1734. GBP/USD to 1.3600’sand USD/CAD back to low 1.2600;s yet again unless 1.2612 breaks lower. USD/JPY back to 110.49, NZD/USD to target low 0.7000’s.

If 5 year averages break then a new situation exist as market prices must adjust and inter loack to new price target scenarios.