Why I'm Trading Trending Currencies
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.
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.
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.!--start-->