Hi, fellow market trend analysts and traders. Let me do a short currency market analysis today. My predictions regarding eur/cad and eur/aud finally came true. Well, eur/aud has been falling for some time and eur/cad joined the fall only today. This only confirms my predictions about the continuation of the strength of Australian and Canadian dollars. I hope you still remember my talks about the power of commodity currencies as well as commodities: gold, silver and oil.
I have not changed my opinion. All the above mentioned ones are going to strengthen. The coming times may not be very easy for currency markets, but I still believe that some currencies will do very well against others and in those currencies one should take his bigger positions. In my opinion Euro and Pound will be the biggest losers in the days to come, Yen possibly being the third candidate for weakness.
Anyway, 1.4100 was a place to go short in eur/cad. The pair retraced a little after breaking the level, but continued the downtrend path today. EUR/AUD did the same and one could have taken a short of a breakout of new lows. If you want some winners in the game I guess they would be eur/aud and gbp/aud (Australian dollar being the king of the week).
I hope you remember that when you see a tendency in progress you need only to trade in the direction of the move and you do it best when you wait for a counter trend move and when it is finished you jump back into a move (after some reversal pattern is formed). And never forget to pick the leader in the move (the security that breaks its’ daily or weekly or monthly range first).
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Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.