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.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.