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Currency strength meter free3/3/2024 A long trade in EURGBP implies an expectation that GBP will weaken. GBP is expected to strengthen against the USD in these types of long trades. With the second pair, the base currency is the GBP. So, this suggests the EUR is expected to gain ground against the GBP, according to long trades. ![]() Within the first pair, the GBP serves as the quote currency. For example, the US dollar is paired with the euro.Īs another example, if EURGBP and GBPUSD correlate -91, This indicates their price movements are likely to be in opposite directions – two long trades (or two short trades) on these pairs will probably cancel one another out. How can you use currency correlation to calculate currency strength?Ĭorrelations between currencies can be measured by understanding their relationship with each other. ![]() You should always trade the strongest currency against the weakest currency to achieve optimal results. ![]() However, economic announcements can also cause them to occur. There could be short-term variations in demand or supply that explain these strengths or weaknesses. Strongest vs weakest: the art of matchmakingįorex traders need to know which currencies tend to be strong and weak when trading the foreign exchange market.
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