Currency Strength Strategy

[VeerTrade]

Pattern recognition and indicators should never be used in isolation when trading as they rarely produce high probability trades on a consistent basis. However, when used in conjunction with Intermarket Analysis they become far more effective.

A simple Intermarket technique to determine the strength of a currency is analyse the Dollar Index relative to other currencies.

By focusing on the strongest or weakest currencies trading can be less ambiguous and we can eliminate the false signals.

The analysis can be used to help verify trading signals or filter out any potential bad trades.

The Indicator will display the individual currency strength for the current day.

 

[VeerTrade]

Difficult trading conditions, GBP and AUD looking best to trade if you can get involved.

With Thanksgiving nearly upon us now is the time to think about closing positions and sitting on hands.

Also need to consider the Swiss vote of adopting the gold standard which will take place on November 30th, although I expect no surprise! The polls suggest the measure will not pass, however there is always a chance something unexpected happens and prices may gap.

Today we have seen some weakness to the Dollar Index (DXC) which is a bit unexpected, but does not alter the generally bullish outlook.

Sit on hands, consider closing positions and enjoy the holidays!!