Big Moves in the Currency Market
December 4, 2008
Most currency traders only have their eyes on the “majors” such as EUR/USD, USD/JPY, and the GBP/USD. Admittedly, these are the most liquid currency pairs, but sometimes opportunities could be missed if you are not also looking at the crosses. Trends are usually more powerful in the crosses than the majors and you may not have realized that some currency pairs hit multi-year lows today on an intraday basis:
GBP/JPY: fell to a 13 year low
NZD/JPY: fell to a 7 year low
CHF/JPY: fell to a 6 year low
On the upside:
EUR/GBP: hit a RECORD high
EUR/NZD: hit a RECORD high
Here are pairs that are closing in on significant levels
USD/JPY: 125 pips from 13 year lows (needs to break 90.92)
USD/CAD: 250 pips from 3 year highs (needs to break 1.3019)
NZD/USD: 130 pips from 5 year lows (needs to break 0.5193)
CAD/JPY: 110 pips from 8 year lows (needs to break 71.02)
GBP/CHF: 125 pips from 34 year lows (needs to break 1.7426)
Also on Monday, I indicated that the British pound was headed for 1.45. That target was reached this morning.
Here is the British pound chart:
Posted in British Pound, Canadian Dollar, EURJPY, Forex News, Forex Technicals, GBPJPY, Japanese Yen, New Zealand dollar, USD/CAD, dollar rally, eur/usd, forex blog, forex signals, usd/jpy
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December 4th, 2008 at 10:02 pm
how do we determine whether it’s the majors leading the crosses or vice versa? it’s important to know as it helps to confirm the underlying move in major/cross is sustainable.
December 4th, 2008 at 11:54 pm
In the forex market, you can tell by watching the % change of the majors.