Tag: how to use currency strength meter

Watching the euro

Following last week’s turbulent price action, no surprise that today the markets have been a litte muted with the added bonus the Shanghai Composite only fell 5% in overnight trading. And with Japan closed for it’s annual Coming of Age Holiday even the Nikkei could take a day off! Meantime last Friday the euro was… Read more »

Kiwi roaring higher on the currency strength indicator

Good to see the Kiwi on a bit of tear (the white line on the currency strength indicator), but comes as no surprise given how oversold it was at the end of last week. We’ve been tracking the NZD/USD which has had a huge move higher overnight & broken through the VPOC on the daily… Read more »

Is Swiss Franc ready to turn higher?

With year end on the horizon, now perhaps is a good time to see what the Swiss franc has been up in an effort to determine what the currency is likely to be doing in the run up to the 15th January 2015 anniversary when the SNB (Swiss National Bank) removed the floor of support… Read more »

Bearish sentiment continues for euro

Despite finding support at 1.0996 following last week’s mauling eurodollar is struggling to hold onto the weak overnight gains. 15 min chart for the pair is particuarly revealing with a series of volatility candles triggered as the combination of the resistance at 1.1056 and the 100ma have been taken by traders as an excuse to… Read more »

Don’t ignore the Kiwi – it can deliver some great trades!

A currency often overlooked by forex traders is the New Zealand dollar, which is a great shame because this commodity dollar can often deliver some impressive and consistent trades, particularly on the slower time frames. And for a reason we only need to glance at the daily chart of the currency strength indicator. Following a… Read more »

Aussie dollar continues lower

As spot forex traders we sometimes forget the futures market can often help with market sentiment towards a currency and the daily chart for 6A, which is the contract for the Aussie dollar is particularly revealing. For the 6A,  it has been a return to business as usual over the last couple of weeks, since… Read more »

Bearish sentiment continues for eurodollar

The release of slightly better than expected preliminary GDP and unemployment claims for the US did manage to add some bearish momentum to the eurodollar before it found support at 1.2525 from where it has been attempting to rally higher. It goes without saying this level needs to be taken out for the pair to… Read more »

Bears take hold of cable

Today’s reversal in cable has once again taken the pair back to the VPOC (volume point of control) support which sits in the 1.5573 price region. This price area is where cable has been rotating since early July, and despite what appeared to be a decisive break away on Monday when cable touched a high… Read more »

Forget the euro, look at the British pound!

In all the brouhaha about Greece and the euro it’s easy to forget what else is going on in the forex market. Sometimes I feel Greece is taking up too much space in traders’ heads at the expense of other markets and currencies. And for a perfect example of what I mean look no further… Read more »

RBNZ drives volatility into the New Zealand dollar overnight!

The RBNZ certainly livened things up overnight – I don’t remember seeing quite so many gaps or such strong moves delivered by one currency! NZD is pretty illiquid at the best of times, so any volatility will magnify any moves. With the NZD it’s a case of the central bank making it very clear further… Read more »