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CURRENCY ANALYSIS

EUR/USD V DXY September 2016

eurusd-v-dxy, september, 2016, levels, ranges, targets, currency analysis, fx trader, forex

EUR/USD and the US Dollar Index, DXY, every month since October 2015 traded between 1 and 2 year monthly averages and on the 1 year anniversary in October 2016, EUR/USD and DXY again will trade between 1 and 2 year monthly averages.

DXY’s range last month at 166 pips was the lowest range since I first reported the DXY V EUR/USD relationship every month from October 2015 but then came October 2016. DXY’s range for October 2016 at 118 pips graduates to the lowest monthly range and factors to 5.9 pips per day in a 20 day trading month. September’s 166 pips factored to 8.3 pips per day and actual was 176 as DXY traded between 94.41 to 96.17.

EUR/USD range for September was 258 pips and traded actual 228 or 11.4 pips per day from 1.1100 to 1.1328. EUR/USD range for October 2016 factors to 188 pips or 9.4 pips per day and the lowest monthly range since first reported from October 2015.

Ranges for EUR/USD and DXY began a serious compression since January 2016 as DXY topside began at 100 and dropped every month to current 96.70 while EUR/USD’s range began January 2016 at 1.1600 to October 2016 at 1.1294. Range compression for September and October 2016 account for bottom rises rather than further topside drops in the averages.

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