I'm convinced there's an obvious response. Let's say EUR/USD, what monies are affected by, for instance, if you are trading.
Is it feasible to forecast the moves of other monies based on a single currency pair's price actions. Certainly if the dollar strengthens against the Euro then it strengthens against other currencies too? If the risk of one allows is this a workable way to exchange whenever is a strong trend in play as on Friday using the EUR/USD?
If the majors begin to move the USDCAD could be slow to react I have noticed. 50 percent of the time it will follow the remainder of the market. But it does not. It's where it gets the loonie tag? It is a bit of a gamble but it's usually great for a few pips.
I have noticed in case the majors start to move the USDCAD can be slow to respond. 50 percent of the time that it will follow the remainder of the marketplace. But sometimes it doesn't. Perhaps it's where it gets the label that is loonie? It is a tiny gamble but it's usually great for some exciting pips.
It is slow to respond for a particular reason. You should be aware of the fundamentals for every currency pair. For instance, let's say you turn on the news channel and you also hear two thing: 1). The riots 2. Oil barrel price rising.
Away from the course the French riots is bearish for the EUR, so there's a good chance that the EUR/USD will be falling. But because the EUR/USD is currently falling doesn't indie the USD/CAD will rise.
Oil cost is up which is extremely great for Canada since they're pretty much North America's version of Saudi Arabia and export a hella lot of petroleum. If oil price is going up, that's great for Canada, and bad for US (since they import 70 percent of the oil).
Factor in news and see whether its country specific. you will probably see fall now if its US specific such as the Fed likely to increase interest rates and USD/CAD shoot up like a rocket at the same rate.
[quote=Pip Daddy It's slow to react for a certain reason. You ought to be aware of the fundamentals for every currency pair. For instance, let us say you flip on the news channel and you hear two thing: 1. The riots 2. Oil barrel price rising. QUOTE]
I base it on all the majors. If there's all round USD power for an open that the CAD can often be found to be sitting idle a there is a fantastic chance it will follow suit. It's not 100 percent since, as you say, the cad could possibly be powerful for which ever reason but it is going to react and pips can be made. Illues that some currencies can be influenced by other people. . .that's all, well, so I thought.
I'm trading (mainly) cable, entrances using 5 and 1 min charts.
I've up overlaping 5 min charts on a single screen of cable, EUR and CHF. I always watch carefully another two pairs, just ahead of entry, especially if they are all at a S/R level. If CHF breaks contrary to my cable entry, I will not take it, at least for a recheck of this circumstance.
If there's a thrust candle on a single pair, others have a tendency to respond in the same direction. If the dollar thrusts abruptly on a single pair ( 10 pips or longer) it is probably that the others will proceed in the same direction, even if just a few pips.
Additionally, when all 3 pairs throw simultaneously, I see this as a better signal to prehaps take a break apart than if cable goes by itself.
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