Forex Crunch » Currency Correlation

Greenback Supported by Lower Equities

Yohay — Tue, 03 May 2011 12:08:04 +0000

Global markets are down ahead of the US session, a decline that should be part of some larger, deeper pull-back. We know that pull-backs are structured by at least three waves; even if it’s only corrective move, which means that we should see more weakness on stocks after small near-term rally, suggested by the S&P Futures chart below.

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Elliott Wave: S&P Gains Means More Upside For AUD/USD

Yohay — Sun, 05 Dec 2010 11:07:36 +0000

Uptrend on Aud/Usd shown from 0.8065 May lows is unfinished since the pair formed only a three wave A)-B)-C) decline from the most recent 1.0181 highs. As such, we believe that this retrace was only a temporary pull-back, probably a corrective blue wave (4) which is part of an impulse structure. On our daily chart you will also notice that pair found the base in this past week just above 38.2% retracement area of a wave (3) distance and around the base channel support zone at the same time, which is a strong evidence that wave (4) lows are in place around 0.9530.

With this being said, the outlook for Aud/Usd remains very bullish with wave (5) yet to come, a leg that should reach levels above 1.0181 November highs.

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Tables Are Turning?

Yohay — Thu, 21 Oct 2010 17:55:52 +0000

Derek Frey sees an a rare overbought situation in gold, and marks the critical levels to watch with gold – on the way down. In his interview with Julie Sinha on Forex TV, Frey also addressed cable weakness and the unwinding of correlations as we are in a market turn point. Enjoy:

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Aussie Rate Decision Larger Impact on Markets

Yohay — Tue, 02 Feb 2010 08:13:02 +0000

The decision to leave Australian’s interest rates unchanged left the Aussie vulnerable and hurt. A look at the decision, the impact for the Aussie and the larger impact for other currencies as the Non-Farm Payrolls are coming.

The decision

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Dollar Wins the week big time – Are the tables turning?

Yohay — Fri, 30 Oct 2009 18:57:02 +0000

This was the week of the dollar, making a strong corrective move across the board. This temporarily halted with the release of the good GDP from the US, but risk appetite was soon replaced with fear. Fear started the week and and fear closed it.

The US dollar index rose from 75.30 to 76.26 at the time of writing, close to the close. The dollar hit the brakes on the big downhill trend seen since mid-March. Is it a temporary stop? Or does it signal a change?

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Dollar falling in the Hide of the Night

Yohay — Fri, 16 Oct 2009 00:30:05 +0000

The US dollar finished the period of grace and returned to falling. The Aussie is at new highs, and the Pound is continuing its comeback. Who stays behind this time? The Yen – Dollar Yen correlation is back in town.

After quite a volatile day, the Asian session sees renewed dollar weakness. The strongest currency of these times, the Australian dollar, makes the most of it. AUD/USD reaches new highs, trading at 0.9250. The 0.93 resistance line is getting close, and this happens very fast. The Aussie Forecast outlines the road ahead.

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Why is the Geppy So Popular?

Yohay — Mon, 21 Sep 2009 09:00:07 +0000

Out of all the possible combinations of crosses, GBP/JPY, also known as the Geppy, is probably the most popular cross. Here are some possible reasons.

GBP/USD combines the British Pound and the Japanese. The most popular pair in the world is EUR/USD. The Geppy doesn’t include the Euro. Although EUR/JPY and EUR/GBP are also respected and traded, GBP/JPY is more popular.

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No Green Shoots for the Greenback

Yohay — Tue, 08 Sep 2009 10:31:21 +0000

The US dollar gives in to pressure and falls across the board – with serious breakouts, including in EUR/USD. This time it isn’t only risk aversion: also the Japanese Yen falls, and the correlation between the two safe haven currencies is broken. US Dollar index is in the lowest levels in a year. Only the British Pound didn’t break technical barriers and may bounce back down.

Breakouts

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Finding New Pairs to Trade

Yohay — Fri, 28 Aug 2009 14:18:57 +0000

Guest Post by ForexTraders.com

By nature, traders, forex or otherwise, can be creatures of habit. That is if we find something that works, we stick with it until it stops working. As it pertains to forex trading, this includes the pairs we trade. Many forex traders get into the game and focus on just one or two of the major pairs. This strategy is acceptable for beginners, but as your acumen increases, it might be a good idea to start looking for other pairs to make some pips. Rookie forex traders often focus on the Euro/US dollar (EUR/USD) and maybe one other major pair like the British pound/dollar (GBP/USD), but if you’re going to trade forex, you should be aware all of the opportunities available to you.

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Forex Reads for the Weekend – August 22 2009

Yohay — Sat, 22 Aug 2009 06:24:06 +0000

Here’s a nice collection of forex-related articles for reading this weekend. All the articles below have a scope of more than on day’s trading:

Michael Greenberg of Forex Magnates, writes about how the economic recovery will hurt forex trading. I think that forex trading will stay strong, and I have a few reasons for that.
James Chen dives into the important technical issue of trading divergences in forex. Interesting for advanced technicians.
Adam Kritzer notes the comeback of the Japanese Yen, just when carry trades were becoming popular again. He explains the reasons for this renewed force. I prefer to focus on the Dollar Yen correlation, which was evident recently.
Mark Thomas, on Winners Edge Trading, discusses the importance of using a forex tracking tool for reviewing and improving your trades.
Tim Barnby, the No-Nonsense Trader, talks about the importance of setting goals in forex trading and to avoid over trading.

That’s it for now. There’s always lots to read and little time.

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