OK traders, no need to make it complicated.
If the Dollar Index (DXC) is weak, we know that pairs like EUR/USD, AUD/USD, GBP/USD and NZD/USD will be strong while pairs like USD/JPY and USD/CHF should be weak. Simple correlation here – remember college statistics?
That is not enough though, we want to know which pairs are performing better or worse than the Dollar Index (DXC) as those will likely be the best pairs to trade.
So, if we simply look at the most recent leg lower in DXC (March 11th high), we can make the assumption that the pairs which outperformed would be the ones to track going forward.
DXC is off about .62% during this time, but NZD/USD is up 1.25% (long) while USD/CHF and USD/JPY are off .80% (short).
Conclusion: only focus on NZD/USD, USD/JPY and USD/CHF. By doing this you have turned all the other noise off and know to focus 110% on set-ups in those pairs. Now you have freed up your time and eliminated the other perceived possibilities and tail chasing. That is the critical difference between those that succeed and those that merely take part!
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Editors’ Picks
USD/JPY flat-lines below 151.50 after soft Japanese CPI data
USD/JPY stays defensive below 151.50 after the release of a soft Japan's CPI report and mixed Industrial Production and Retail Sales data on Friday. Japanese verbal intervention also weighs on the pair amid the holiday-thinned conditions on Good Friday. US PCE inflation awaited.
AUD/USD buyers lack vigor above 0.6500 amid Good Friday trading lull
AUD/USD is trading listlessly above 0.6500 in the Asian session amid light trading on Good Friday. The Aussie pair shrugs off encouraging comments from China's FX regulator, as price action remains subdued ahead of the US PCE inflation data.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. As this coiling up comes undone, investors can expect XRP to kickstart a massive rally.
Will they won’t they cut rates is the question of Q2?
There has been some significant push back from Fed and Bank of England members around the timing of rate cuts, and the Bank of Japan still haven’t physically intervened in the FX market to stem yen weakness although they are threatening to do so.
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