Saturday, January 5, 2013

Do not forget Forex crosses

If you visit most of Forex forums and read Forex forums you will find out that most traders and analysts are interested in major currency pairs. The most popular of course is eur/usd pair. Unfortunately, most traders miss a lot of opportunities that other currency pairs and crosses present. Take variations of Canadian and Australian dollar pairs and see how big trends they develop. You might be surprised. One can get thousands pips in a few weeks when trends start in these crosses. And trends are often more usual than they are in major pairs. 

Last year was particularly good for eur/jpy, gbp/jpy, eur/aud and gbp/aud crosses. Just look at your charts to see what huge moves they had in 2012. Some expect these moves to continue in 2013. I have already said that I expect Yen to reverse and strengthen, possibly in the first quarter of this year. I also believe Australian dollar will continue strengthening particularly against European currencies: Euro, Pound and Swiss franc. 

You should remember that the key in Forex trading from fundamental point of view is monetary policy of Central banks and since commodity currencies have biggest interest rates and those will probably continue increasing than one can have very profitable long positions commodity crosses. 

Ok, that much about Forex crosses! See you soon. 

If you are ready to trade Forex, futures, indexes and stocks I recommend Etoro. 

Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.