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The major currency pairs: EUR/USD USD/JPY USD/CHF GBP/USD The commodity currency

pairs: AUD/USD NZD/USD USD/CAD

Major Currency Pairs Personalities EUR/USD The most recent Bank for International Settlements (BIS) survey shows that the EUR/USD with 28% of the total daily volume is the most traded currency pair on the forex market. The EUR/USD tends to be negatively correlated to the USD/CHF and positively to the GBP/USD. (see weekly charts)

Characteristics Average broker spread: 2-3 pips Daily range average : 90-100 pips Best time to trade: Euro Session (0700 GMT - 1700 GMT) Some factors affecting the EUR/USD rate:

  

The interest rate differential between the European Bank(ECB) and the Federal Reserve(FED) Dollar strongness drives EUR/USD lower FED intervention to weaken the dollar the sends EUR/USD higher

Trading the EUR/USD Trading Experience: New and Advanced currency traders Trading Style: Day trading and Swing trading How to trade? 1) Applying Technical Analysis and/or Analyzing Fundamental News from the Euro and US zone to make EUR/USD

the EUR/USD is very likely to break below support level. Characteristics Average broker spread: 2-4 pips Daily range average : 80-90 pips Best time to trade: Asian Session (2400 GMT . GBP/USD The most recent Bank for International Settlements(BIS) survey shows that the GBP/USD with 14% of total daily volume is the third most traded major currency pair. 1. Breaking strong psychological levels (1.0900 GMT) Some factors affecting the USD/JPY rate:   The interest rate differential between the Bank of Japan(BoJ) and the Federal Reserve Japanese government intervention to strengthen their currency sends USD/JPY lower Trading the USD/JPY Trading Experience: New and Advanced currency traders Trading Style: Day trading and Swing trading How to trade? Applying Technical Analysis and/or Analyzing Fundamental News from the Asian zone to make USD/JPY trading decisions. Breakouts are often true and sustained ones. USD/JPY The most recent Bank for International Settlements (BIS) survey shows that the USD/JPY with 17% of total daily volume is the second most traded major currency pair..3000. it is always a good idea to compare both EUR/USD and USD/CHF charts in order to predict future moves.2000. 2) Since the EUR/USD pair tends to be negatively correlated to the USD/CHF.) and/or surprising economic news releases can make the EUR/USD move a lot in one direction without much retracements.trading decisions.. . This also illustrates how USD/CHF tends to lead the move ahead of EUR/USD. The GBP/USD is one of the most volatile currency pairs generating many false breakouts and wild movements. therefore. if USD/CHF breaks above an important resistance level and EUR/USD didn't break support level yet. it is not recommend to start trading this pair unless you are a very experienced currency trader.

The USD/CHF tends to be negatively correlated to the EUR/USD.Characteristics Average broker spread: 4-5 pips Daily range average : 150-200 pips Best time to trade: Euro Session (0700 GMT .1700 GMT) Some factors affecting the GBP/USD rate:   The interest rate differential between the Bank of England(BoE) and the Federal Reserve High yield and attractive growth in the UK drives GBP/USD higher Trading the GBP/USD Trading Experience: Expert currency traders Trading Style: Day trading and Swing trading How to trade? Applying Technical Analysis and/or Analyzing Fundamental News from the UK and US zone to make GBP/USD trading decisions. Characteristics Average broker spread: 4-5 pips Daily range average : 120-135 pips . USD/CHF The most recent Bank for International Settlements (BIS) survey shows that the USD/CHF with 4% of total daily volume is the least liquid traded major currency pair. Watch out for false break outs! Surprising economic news releases can make the GBP/USD move a lot in one direction without much retracements.

it might be a good strategy to buy the Australian dollar since it's 80% positive correlation to gold. When making trading decisions in the commodity pairs. 2) Since the USD/CHF pair tends to be negatively correlated to the EUR/USD. it is always a good idea to compare both EUR/USD and USD/CHF charts in order to predict future moves. Highly correlated to rising and falling gold prices are the AUD/USD and NZD/USD currency pairs. If you think gold will keep rising. Commodity Pairs Analysis AUD/USD ( Australian dollar / U.Best time to trade: Euro Session (0700 GMT . Trading Ideas 1) If you think Gold will keep rising. if EUR/USD breaks above an important resistance level and USD/CHF didn't break support level yet. the USD/CHF is very likely to break below support level. This also illustrates how EUR/USD tends to lead the move ahead of USD/CHF. dollar ) Because Australia is the world's third largest exporter of gold. you could favor a commodity-based economy like Australia because if gold rises. it might be a good idea to compare both AUD/USD and gold charts in order to predict future moves. the single biggest beneficiary of rising oil prices is the USD/CAD. If you believe the price of gold will continue to increase. The Commodity Pairs Written by Jimmy Yung The three currency pairs that have the highest correlations with commodities are the Canadian dollar (CAD). if for example gold breaks above an important resistance level and . For example.1700 GMT) Factors affecting the USD/CHF rate:   Global stability and global recovery will send USD/CHF higher USD/CHF rallies on geopolitical instability Trading the USD/CHF Trading Experience: Moderate and Advanced currency traders Trading Style: Day trading and Swing trading How to trade? 1) Applying Technical Analysis Analyzing Fundamental News from the CHF and US zone to make USD/CHF trading decisions. and the New Zealand dollar(NZD). it might be a good strategy to buy the Australian dollar because it's 80% positive correlation to Gold. the Australian dollar has an 80% positive correlation with this metal. Australian dollar(AUD).S. it might be a good idea to take a look at the correlated commodities because it can help to predict future up or down movements. 2) Since the AUD/USD pair tends to be highly correlated to gold. the Australian Dollar is very likely to follow it's lead.

The New Zealand dollar has an even stronger correlation with gold than the AUD/USD does .S. it might be a good strategy to buy the New Zealand dollar because it's 85% positive correlation to gold over the past years. If you believe the price of gold will continue to increase. This explains why the New Zealand dollar and the Australian dollar have had a 92% positive correlation over the past four years (20032006). NZD/USD and the AUD/USD have a clearly positive relationship because of Gold(see charts below) . the AUD/USD is very likely to break above also. This illustrates how gold tends to lead the move ahead of NZD/USD. the NZD/USD is very likely to break above also. This illustrates how gold tends to lead the move ahead of the Australian dollar. 2) Since the NZD/USD pair tends to be highly correlated to gold (together with the AUD/USD). you could favor a commodity-based economy like New Zealand because if gold rises. Trading Ideas 1) If you think gold will keep rising.the correlation has been approximately 88% over the past three years. it might be a good idea to compare both NZD/USD and gold charts in order to predict future moves in the New Zealand dollar. dollar) The health of New Zealand's economy is closely tied to the health of the Australian economy. the New Zealand dollar is overly likely to follow it's lead. if for example gold breaks above an important resistance level and NZD/USD didn't break resistance level yet. Below charts illustrate the high correlation between the Australian dollar and Gold. NZD/USD (New Zealand dollar / U.AUD/USD didn't break resistance level yet.

Therefore. will experience a boost to its economy when oil price continue to increase. Trading Ideas 1) If you believe the price of oil will keep rising. dollar / Canadian dollar) The USD/CAD is the single biggest beneficiary of rising oil prices. the correlation between the Canadian dollar and oil prices has been approximately 81%.S. if oil rises the Canadian dollar is likely to follow. The charts below illustrate the high correlation between the Canadian dollar and oil.USD/CAD (U. it might be a good idea to compare both Canadian dollar and oil charts in order to predict future moves. Over the past years . the USD/CAD is very likely to break above also. 2) Since the USD/CAD pair tends to be highly correlated to oil. This illustrates how oil tends to lead the move ahead of USD/CAD. it might be a good strategy to buy the Canadian dollar because it's 81% positive correlation to oil over the past years. . Canada which is already the biggest exporter of oil to the US. if for example oil breaks above an important resistance level and USD/CAD didn't break resistance level yet.