Sunday, August 15, 2010

Time for thinking

No much activity recently, I need some time to clean my mind and plan the new season. Today I was just watching charts of eur/usd and eur/jpy, side by side,on same time periods. A very obvious remark : Eur/jpy had lost most of his shine. The leader now is the euro-usd pair. It is as spectacular as it was the former in the near past. Eur/jpy is a follower now. It cannot lead the movements, its moves are only adjustments of price between eur/usd and usd/jpy. Given also its erratic summer behavior and the bigger spreads, it is maybe time to trade eurusd. But I always have a look on eur/jpy's ADX, to catch the (fewer) high volatility periods.

4 comments:

Kevin said...

Maybe or maybe not. EURJPY peaked on July 27 and then formed a big triangle to "wait" for EURUSD to peak on Aug 6. Both of then fell out of channel on Aug 9. Now, EURJPY has reached 61.8% retracement. EURUSD is still at 50% retracement. Of course, EURUSD always takes the spotlight. Thanks for sharing.

The forexbird said...

Kevin,
You are correct about the daily chart. But this does not interest me, all i look for is (very) short term volatility. And on this, eur/usd is better recently. Compare the ADX price of both on M. Analyzer, for proof.

Kevin said...

You are correct. Thanks again.

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