Euro-Crosses should Extend Even Higher In Risk-On Environment
Our Services (7-day trial) Subscribe to our newsletter
Jan 28 2013
USD has been trading higher against its rivals during the Asian trading hours. AUD, GBP and CAD are still one of the weakest while JPY is trying to find some support for the near-term. Larger picture of the markets remains unchanged but still very messy.
Below we have an overlay chart between some major FX currencies compared to S&P Futures and Crude Oil. We can see a strong negative correlation between FX pairs where only the EUR is moving higher in-line with risk-on assets, such oil and S&P. Honestly, we do not like divergences too much, especially not between aussie and S&P which in fact could be signaling for a coming pull-back on stocks.
Anyhow, traders need to trade what they see and not what they think, so at the moment looking for longs on EUR-crosses should be the best choice.
See you on the intra-day updates page with more charts and comments.
New York time: 00:00:00
Local time: 00:00:00
©2010 - 2020 ew-forecast.comDesign: VOBI