We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
EUR vs GBP

EUR vs GBP

2010-08-04 13:23:00
Thomas Long, Course Instructor
Share:

The next step is identifying the strong currencies to match up with the weak USD. I try to keep this analysis simple and consistent and to me that means comparing highs and lows on the charts. Here is an example. This first chart is a daily chart of the EUR/USD. Note how the market is still below the 200-day Simple Moving Average and also well below the April high. Now compare that with the second chart which is a daily chart of the GBP/USD. Note how this market is above the 200-day Simple Moving Average and above the April high. To me, this means that the GBP is much stronger than the EUR and that the GBP/USD is a better buy than the EUR/USD. The GBP is showing real strength while the EUR lags. The idea is to match the strongest currency with the weakest currency and to trade that pair. This is an edge that trading FX offers and one worth adding to your approach.

EUR_vs_GBP_body_63418d1280926490-chart-day-eurusd-gbpusd-804.png, EUR vs GBP

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.