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

EUR/USD stabilizing as US coronavirus cases continue to climb

EUR/USD is trading around 1.1250, pressured amid concerns about the spread of coronavirus in the US. Traders are digesting the upbeat Non-Farm Payrolls figures already out ahead of the long US weekend. 

EUR/USD News

GBP/USD attempting a bounce amid thin liquidity

GBP/USD is closer to 1.25, off the lows. Top-level EU-UK Brexit talks have been postponed until next week amid disagreements. The UK is continuing to reopen while US coronavirus cases are surging. 

GBP/USD News

USD/JPY: The pair is stuck between 107.33 and 108.00 for now

USD/JPY has traded in a very thin range on Friday as volumes remain light to a US holiday. Looking at the chart below it is clear to see the pair is stuck in a rut as it nestles within a 67 pip range.

USD/JPY News

Editors’ Picks

EUR/USD stabilizing as US coronavirus cases continue to climb

EUR/USD is trading around 1.1250, pressured amid concerns about the spread of coronavirus in the US. Traders are digesting the upbeat Non-Farm Payrolls figures already out ahead of the long US weekend. 

EUR/USD News

GBP/USD attempting a bounce amid thin liquidity

GBP/USD is closer to 1.25, off the lows. Top-level EU-UK Brexit talks have been postponed until next week amid disagreements. The UK is continuing to reopen while US coronavirus cases are surging. 

GBP/USD News

USD/JPY: The pair is stuck between 107.33 and 108.00 for now

USD/JPY has traded in a very thin range on Friday as volumes remain light to a US holiday. Looking at the chart below it is clear to see the pair is stuck in a rut as it nestles within a 67 pip range.

USD/JPY News

Bitcoin must endorse the time of Ethereum has come

The crypto market remains in a choke point, and after signs of a possible upward shift yesterday, the market was once again disappointed to see Bitcoin in the low range of the $8900 to $9000 choke point.

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Gold: There is a bearish signal on the 4-hour chart

Price action has been slow on Friday due to the bank holiday in the US as the nation celebrates independence day. This week has been an interesting one as there has been some good economic data but some very bad coronavirus news in the US. 

Gold News

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