Really? What do you consider to be the normal price action of AUDNZD? Please show us a chart.
Looks like this pair has the usual ups and downs as all pairs do.
It is best to follow Strong/Weak and trade the price action and not be biased.
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This has been answered several times throughout the thread. In general Take profit and Stops are taken at your own risk tolerance. However, many of us will enter and scale at 100/200/300 pips with stop loses set to our preference to lock in profit. Strong weak is like Tyson in his prime fighting a 150 pound man off the streets…He should win…but nothing is guaranteed. Use it as a guide giving you more confirmation for entries. Good luck and stay profitable!
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I don’t ever take trades based on convergence. But I think its an interesting observation that the current relationship between AUD and NZD seems to be an outlier.
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Let’s think about the fundamentals, which drives every currency, to be strong or weak, observe anything there?
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Yes indeed, there are valid reasons for the divergence between the performances recently of the AUD and NZD. These have occurred before. The current divergence is significant in magnitude. But these underlying factors have not yet been seen to be permanent distinctions.
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Can you give us an example of “significant divergence”? You must be looking at this on the charts right?
Sure. I use a method different to Dennis’s which notes the position of price on each of the 28 leading forex charts compared to the 50EMA. I was using it before I found this thread, and note it gives similar results most of the time.
If price is above the 50EMA this is bullish for the base currency but bearish for the counter currency. Across the 28 pairs this gives a possible “most bullish” score of 7-0 and a possible “most bearish” score of 0-7. My 7-0 and 0-7 score currencies usually tally closely with Dennis’s Strong/Weak currencies.
Some currencies spend most of their time with closely matched bullish/bearish scores. For example EUR and CHF, AUD and NZD, AUD and CAD, and to lesser extent EUR and GBP. When the two currencies in these groupings start to score 7-0 or 6-1 to 0-7 and 1-6, that is unusual and worth noting, nothing more.
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Decline in USD looks like it might be over
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USD takes a step back
Note; I will be traveling tomorrow and will not post again until Thursday evening
Everyone have a wonderful Thanksgiving
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And to you, Dennis!
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GBP was the winner for the week but a slow week, I would expect things to pick up this week and maybe we get a Santa rally this year,
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GBP was the winner for the week but a slow week, I would expect things to pick up this week and maybe we get a Santa rally this year,
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Thanksgiving usually dampens down Forex trading. Hope you and all our American members had a good holiday.
(It’s just another week for us Brits)
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I guess I was right about things picking up, I just did not expect so much red
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Big reversal day for top trade NZDUSD, long term trend is down for this one so it could head south rather quickly here. Still it gave us over 100 pips
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CAD continues to drop
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Stocks surge and risk on currencies do the same
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