Top Forex Pairs VS. Gold: Another One Bites The Dust

Aibek Burabayev - INO.com Contributor - Metals


A year ago I wrote a post to compare the top currencies dynamics against Gold inside of the year. Today I want to repeat the experiment to see which one could beat the safe haven and which one couldn't. This time, you will see a modified version of the chart where the inverse metal crosses show not Gold's (last year version), but the currencies' dynamics for easier eye perception.

To remind you of the short list, there are seven currencies compared: US dollar (USD) and 6 components of the US dollar index placed by weight: Euro (EUR), Japanese yen (JPY), British pound (GBP), Canadian dollar (CAD), Swedish krona (SEK) and the Swiss franc (CHF). Continue reading "Top Forex Pairs VS. Gold: Another One Bites The Dust"

Forex Currency Pairs: How to Choose the Right One Right From the Start

As many countries there are that have their own currency, there are currency pairs to trade. This does not mean you should start off studying the movements of the Guatemalan Quetzal. New traders need to stick to those currencies whose indicators and movements have been well documented.

The three major currency pairs are the EUR/USD, GBP/USD and USD/JPY. If you didn’t already notice, the US dollar is listed in each one. That’s because this it the most traded currency in the market, and the one that has been studied at length.

There are three very good reasons why you should stick with these three currency pairs:
• All of them are well established currency pairs that are traded widely. This type of liquidity guarantees that you are going to profit from price changes.
• They all have the US dollar, which means that the most amount of activity will be during the New York trading hours. This adds to the liquidity as this is typically when the highest amount of Forex trading is taking place.
• Since they are so popular, a new trader is going to find a wealth of Forex trading systems online that can help them in trading these pairs successfully.

Which Ones Should You Avoid?

Any currency that is considered to be exotic or uncommon should be avoided by new traders. In some instances the financial state of the country is too unstable to be able to read the charts properly. For others, there just is not enough information available to you. A new trader needs to use as many resources as possible before placing a trade. Unless you have some first hand knowledge of Guatemala and its future financial state, you should stay far away from trading the uncommon currencies.

Focus your attention instead on the: Continue reading "Forex Currency Pairs: How to Choose the Right One Right From the Start"

Let's Take A Look At The Currency Markets

In light of the news from the land of the rising sun and the sinking currency, let’s reserve NFTRH 315’s only real charting for a big picture monthly view of currencies, to which we usually give just a brief update, and then some misc. big picture monthly charts [not included in this excerpt] as we try to gain perspective on things that may seem illogical to our rational minds.

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Yen is losing the next level of support.  BoJ saw that support too. I’ll bet they also took note of the big October bounce and found it unacceptable.

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The Euro is losing the support zone after bouncing above it in-month. Continue reading "Let's Take A Look At The Currency Markets"

Chart of The Week - Canadian Dollar

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

This week’s focus turns to the March Canadian Dollar futures, where recent down-trend market structure has given way to a possible continuation of the sell-off in coming days.  After posting a recent swing low of 88.99 on January 31st, the market has since experienced short covering off of the recent sell off.  Last week, we saw consolidation off of the recent short covering.  In weeks past, we have seen multiple tests, and failures, of the 20 day moving average, making this indicator a key resistance point.

As we open this week, if we see yet another failure of the 20 day moving average, traders will likely expect a sell off if the market breaches Friday’s low of 90.17.  Along with a strong average directional index reading, the March Canadian Dollar could have strong downside momentum in the near term.  If this scenario takes place, the likely target would be the March Canadian Dollar’s swing low of 88.99.  Continue reading "Chart of The Week - Canadian Dollar"

Adam's 5 Big Market Predictions for 2011

It's that time of year again when everyone who is considered an "expert" comes out of their ivory towers and makes their annual market predictions for the New Year.

It's time to kiss those predictions goodbye.

I can honestly say that I wish I had a crystal ball like these other forecasters, but that's not quite how the markets work. You see, markets don't give a "Rats A**" about what forecasters say or what predictions economists make. The market is the only true voice out there.

Think about that for a moment. How many predictions do you remember that were even close to being spot on a year in advance? I remember several forecasts for 2010 and most of them were far from accurate.

Does it make any sense to trade on a year-end forecast, not knowing what can happen in this crazy world we live in? It doesn't make any sense to me or to other professional traders who never trade based on year-end predictions.

So let's get back to reality and take a look back on 2010 to see what the big trends are showing for 2011.

Continue reading "Adam's 5 Big Market Predictions for 2011"