Daily EUR/USD trades

As I am new to FX I have the following issue with TA based on pairs charts. For instance EUR/USD might be showing strength, but weakness on EUR/GBP. GBP/USD is showing weakness, when USD/JPY is showing strength, etc. All hypothetical examples. The question is - is TA on pairs relevant? Isn't it more productive to analyse currencies individually, rather than in pairs?

 

I am not an FX expert, but...

Yes, the TA for the currency pair A/B you are trading would obviously be of primary importance. The TA for pairs involving involving A or B would be of secondary importance. The TA for pairs not involving A or B would be of tertiary importance.

Of course, analyzing each additional pair would be a lot of extra work if you did it the same way as you do for the primary pair (e.g., using the technical analysis that most people do)... unless you did it with much less scrutiny than for the primary pair.

If you are trading EUR/USD, then of course knowing what EUR/GBP and GBP/USD (and even JPY/GBP) are doing would give you extra (marginal) information.

You could summarize the set of all pairs you want to consider by looking at the matrix of rates and the correlation matrix. What would be cool is doing TA on those matrices.

In fact, I'm sure there are people out there in quant FX shops and individuals who do relatively sophisticated statistical analysis on the correlation matrices of currency pairs along with other information.

 

It does look like it's ready for a bounce here.

 

From IFR...heh

EUR/USD is little changed after the Beige Book confirmed a continued housing and
auto sector slowdown but highlighted generally positive manufacturing activity
and retail sales. Labor markets are still tight but wage pressures are moderate,
the Book says.
Trichet is on the wires as well, saying the Eurozone economy is more open than
the US. Riiiight. Tell that to a European employer wanting to sack an
unproductive worker. Euro area economies are more interdependent now, he says.
EUR/USD trades at 1.3150 after holding onto 1.3130/35 multiple times.

 

That seems too complicated for me, I think what I will look at is Euro futures, but is there a future for USD? That would be ideal for me.

 

NYBOT has one, or used to, but I'm not sure it's very liquid. Might be OK for small
lots and swing/position trading.

 

Ivan are you a trader or a reporter wannabe for Barrons ?

Nothing personal, just a question.

 

Hello guys....
USDJPY is beautiful here
we are just below 116.45 resistance - Nice level to go short
what do you think ?

 

Nobody in his/her right mind would trade forex.

Try futures at IB.....they are the very best.

 

ok vols aer very low at the moment, but still, i think there is somthing to do in fx