An overlay of forex majors from 08 September 2016 when USD strengthening started reveals their relative strengths. Commodity currencies are loss leaders.
Sell loss leaders by relative strength
This chart shows an overlay of forex majors on a hourly time frame starting from last Thursday 08 September 2016. The chart shows:
- USD strengthened against every major currency.
- AUD and NZD are the weakest, USD made most gains against these two.
- EUR, JPY and GBP are the most resilient.
- Should the current trend of persist, the trades that might offer the most movement are short AUDUSD, NZDUSD, AUDJPY, NZDJPY or long EURAUD, EURNZD, GBPAUD, GBPNZD.
- The worst pairs to trade with least movement combine two of any of these EUR, GBP, JPY and USD.
Hourly chart overlay of forex majors from 08 Sep 2016
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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.
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"I do not have a financial advisor's license. I am not qualified by any regulator to give financial advice. I do not know you the reader. Your investment means and motive may be different from me. My posts here are based on observations and meant for education. I am not responsible for for any consequence from your actions."