News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Mixed
GBP/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
USD/JPY
Mixed
More View more
Real Time News
  • Markets attempted pull risk trends out of their dive this past session, but sentiment (via $SPX) ultimately returned to its bearish course. Meanwhile, $EURUSD is consistent with its reversal. My video for today: https://www.dailyfx.com/forex/video/daily_news_report/2020/09/24/EURUSD-Extends-its-Dive-as-Late-Day-Selloff-Puts-SP-500-On-Verge-of-Correction.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/Q6JZKW2B1y
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.57%, while traders in EUR/GBP are at opposite extremes with 64.76%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/JHNAiIgVLv
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.11% 🇪🇺EUR: -0.02% 🇯🇵JPY: -0.06% 🇨🇦CAD: -0.08% 🇳🇿NZD: -0.22% 🇦🇺AUD: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/im3IxxDQ3y
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.15% US 500: 0.12% FTSE 100: -0.94% Germany 30: -1.00% France 40: -1.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/X6mMfIY6HW
  • The US Dollar, British Pound, and Euro will all be closely watching key geopolitical developments in North America (Powell testimony), the UK (Brexit talks) and Europe (EU summit). Get your market update from @ZabelinDimitri here:https://t.co/q4AJW6PTCu https://t.co/e0rwBFOnqX
  • RT @stlouisfed: The current recession has in many ways been more extreme than the Great Depression, yet the economy is projected to recover…
  • The US Dollar is struggling against ASEAN currencies despite weakness in the S&P 500. Capital remains flowing into emerging markets, keeping USD under pressure, could this change? Find out from @ddubrovskyFX here:https://t.co/nwhy3XhE74 https://t.co/ir20IjaJFu
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: -0.06% Oil - US Crude: -0.97% Silver: -1.60% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/H9676jm7CT
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.14% 🇪🇺EUR: 0.01% 🇨🇦CAD: -0.01% 🇯🇵JPY: -0.07% 🇳🇿NZD: -0.17% 🇦🇺AUD: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/tm1u1cKErl
  • #Market Snapshot $AUDUSD sliding to fresh session-lows on the back of #MorganStanley's suggestion #IronOre prices will fall in Q4 Haven-linked $USD and $JPY pushing back to session-highs after dipping lower in early trade $Gold nudging slightly higher https://t.co/FsT9RIZYvR
A Faster Way to Find Trading Opportunities

A Faster Way to Find Trading Opportunities

2014-10-10 19:00:00
Rob Pasche, Forex Trading Instructor
Share:

Talking Points:

  • StrongWeak app allows us to focus on the biggest movers
  • AUD/JPY could move lower towards 92.00
  • AUD/USD could move lower towards 0.8000

I am all about simplicity and efficiency in most aspects of my life, trading included. So when FXCMApps.com came out with the StrongWeak app, I was hooked. Not only can this application save us time by finding the biggest market movers instantly, it can give trend traders a direction bias as well. Today, we learn how to read the StrongWeak application and look at two trade setups based on their current levels.

Using the StrongWeak App

The StrongWeak app can be downloaded here. This application has a price tag of $99, but for a limited time can be downloaded for free if you make a $2,000 deposit into an FXCM account (no minimum trading volume requirements). The application can be downloaded and installed just like any other program on a Windows PC.

StrongWeak focuses on 8 currencies, EUR, GBP, USD, JPY, CHF, CAD, AUD, and the NZD, across 4 times frames: M15, H1, H4, and D1. It calculates how many pips each currency has gained or lost against all of the other currencies and then adds them all together. The premise of StrongWeak is to find what currencies have been the strongest and the weakest against all other currencies in pips, with the hopes of pairing them together and looking for trading opportunities.

A screenshot of StrongWeak that was taken at the time this article was written is posted below. On the left side, we have the aggregate results for each time frame and currency. On the right, the charts are separated into individual time frames. Whichever side you prefer, it gives us the same information regardless.

Learn Forex: The StrongWeak App Aggregate Scores.

A Faster Way to Find Trading Opportunities

(Created using FXCM's StrongWeak App)

I prefer looking at the Daily data points for each currency since I am more of a longer term trader. There are two currencies that stand out as the strongest (USD & JPY), and one currency that stands out as the weakest (AUD). Using these currencies, we create two currency pairs that have the potential to become actual trade setups, the AUD/JPY and the AUD/USD. It is now time to analyze these pairs with our direction bias. If the AUD is weak and the USD & JPY are strong, we want to look into selling AUD/JPY and selling AUD/USD.

The AUDJPY Trade Setup

Pulling up an AUD/JPY chart, it is clear how this pair has shown up on the StrongWeak app as an extreme. We’ve had a relentless downtrend for the last 5 weeks including the last 24 hours where the pair has aggressively attacked 94.00, a previous swing low. Adding a couple trend lines on our chart, the next major support level appears to be around 92.00, approximately 180 pips away.

Learn Forex: AUDJPY Heading Lower Towards Support at 92.00

A Faster Way to Find Trading Opportunities

(Created using FXCM's Marketscope 2.0 Charting Package)

So within a couple minutes, we’ve identified a pair with a lot of momentum, attacking a recent support level, with its next support level 180 pips away. These are the type of trend trading setups we want to be looking for.

The AUD/USD Trade Setup

The 2nd pair that StrongWeak identified was the AUD/USD. This setup is fairly similar to the AUD/JPY trade above, but rather than needing to draw trend lines connecting highs and lows, we can draw horizontal support levels extended from two major swing lows.

The Aussie is approaching support near 0.8700 (0.8662 to be exact) which has prevented price from breaking lower for an extended period of time. Price has temporarily crossed below support a couple of times, but we have yet to see a Daily close below this level. If that were to happen, it could be treated as a short breakout trade.

The next major support level on the AUD/USD comes from the swing low back in May 2010 around 0.8000. This could be an appropriate area to set a profit target for a long term short position, as long as we are using proper money management.

Learn Forex: AUDUSD Could Break Lower Towards 0.8000

A Faster Way to Find Trading Opportunities

Quick & Easy

The StrongWeak app does a very good job at honing in on the pairs that are moving and allows traders to quickly identify if there are trading opportunities or not. The two examples above were based on today’s movements, but each day the StrongWeak app will update and can provide more ideas. If you would like to test these trades risk-free, download a Free Forex Demo account today with free charts and real-time pricing data.

Good trading!

---Written by Rob Pasche

Start your Forex trading on the right foot with the Forex Fast-Track Webinar Series. This 4-part, live webinar course is the disciplined Traders’ Fast-Track to the Forex Market. Topics include:

  • Using FXCM’s award-winning trading platform
  • Calculating Leverage and reducing risk
  • Trading with a simple (yet effective) trading strategy
  • Maintaining for Forex account and enrolling in on-going education

This course is completely free, so sign up or watch on-demand today.

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

DISCLOSURES