Forex Euro Dollar Chart
After the dollar Bouncing
No one can be sure how the Fed last cut interest rates in the short term or the latest statistics manifested in economic exchange markets, but VantagePoint Intermarket Analysis Software charts can suggest some good short-term transactions before that are obvious to everyone else. The U.S. dollar offered the latest example, jumping higher after almost everyone was convinced that dollar will weaken even more to get the U.S. economy chaos of their debt.
The good thing about currencies is that you can analyze them from different angles. With wheat or gold or most other markets, intermarket analysis can help assess the influence of interrelated markets and instead he only the graph of wheat to make an entry / exit decisions.
With currencies, however, can be seen in the U.S. dollar price in terms of another currency or you can view in the other currency price in dollar terms. You can evaluate the currency pairs in the cash market or you can measure the value of major currencies against the U.S. dollar in the futures market. The analysis of the coins and cards in several I can help you see where the strength or weakness lies.
Although we could have a complex strategy with a number of indicators available in VantagePoint, we like to take the KISS – Keep It Simple, Stupid – approach negotiation. Here is a method that uses a combination of three simple criteria for purchase:
1. Planned neural Index at 1.00.
2. Preview medium-term exponential moving average (EMA) prices above the typical mid-term real simple moving average (SMA) of the closure.
3. Predicted difference long-term angle of the line up.
And three simple criteria for selling:
1. Index neural expected 0.00.
2. Planned EMA medium within typical prices below the SMA's medium-term real closure.
3. Predicting long-term difference angle of the line down.
Neural prediction of the index property is an indicator that compares today's real median rolling three-day moving average of three days predicted indicate whether the market will be higher (reading of 1.00) or below (reading of 0.00) over the next two days. Crossover of the medium-term moving averages point to change direction. The long-term predictable interval is the amount that the planned six-day EMA of prices typical three days ahead is above or below the actual 15-day SMA of the fence.
The attached tables show how this strategy in the analysis of the U.S. dollar two perspectives – The USD / CHF currency pair and June futures euros, which shows the price of the euro in dollar terms. In both letters, the number 1 highlights the expected mid-term Moving Average (blue line) crossover of the actual motion of the medium-term average (black line), the number 2 indicates the angle of the line of predicted long-term (green line), and the number 3 shows the reading of the neural prediction index (gray line).
Figure VantagePoint for the future of the euro in June looks almost like a reflection of the USD / CHF chart. Instead of the fall indicated for the dollar in February, the euro futures chart shows the combination of an upward crossing of the predicted moving average (1), a long-term increase predicted difference line (2) and provided an index reading neuronal 1.00 (3).
These tracks have gotten that about 1.46 long. You may have fallen by around 1.54 in the slide in March, or, using the money market, it is possible that hung on until late April. In any case, there was a good profit, and the indications in the future of the euro a little more clear in the USD / CHF chart. The final combination of tracks indicates a downtrend in euro futures and a short position around 1.5645.
As with USD / CHF chart, we can not say with certainty how long or strong downward trend this is, but active trading short-term with these indicators VantagePoint euro would be to mount a short futures position in early May.
About the Author
Erik is a day trader using Intermarket Analysis as a trading foundation. He uses VantagePoint software to predict market moves in the Forex, Futures, and commodities markets.
Day Trading Chart of the Day: EUR/USD Forex