Why I'm Trading Trending Currencies

Focus: CURRENCIES

Raghee Horner Image Raghee Horner Author, Forex Trading for Maximum Profit

Sometimes it’s an individual currency that has a trend that makes sense to watch and capitalize on, notes Raghee Horner of InterbankFX.

Since the second week of January I have been focusing on the yen, euro, and kiwi—more or less in that order. Having pairs that are trending based on yen weakness, euro strength, and kiwi strength bring me to pairs that have directional bias or a clear and established trend.

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Past performance is not indicative of future results
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Past performance is not indicative of future results

Of course, corrections will happen but the key is to understand that a reversal would not occur until the yen trades above 1.1400 and even the 50DMA for a more psychologically relevant and technical level. The key will be to wait for those sizeable corrections higher and short into them between the 20DMA and 34 period EMA low.

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Past performance is not indicative of future results
Click to Enlarge

While not as established (or convincing a trend) the technicals of the euro show a “12 to 2 o’clock” angle of the 34EMA wave and recently consistent green GRaB candles.