Here are three more downtrends. This time they represent reversals of sentiment in three of the worlds strongest currencies. Two, the Australian Dollar and the Canadian Dollar, are tied to the downtrends in commodity prices in recent weeks. The Aussie and the Loonie, as the two are known among Forex traders, are known as "commodity" currencies for this reason. The Loonie also seems to be hit by its close relationship to the U.S. economy, according to a Bloomberg article this evening. Note in the charts the engulfing patterns on the Loonie and Kiwi charts.
The third one, the New Zealand Dollar, has had the highest interest rates among the developed nations of the world, but economic weakness has forced the Central Bank of New Zealand to recently begin lowering interest rates for the first time in several years, and the Kiwi's strength has begun to wane as a result.
One reason why I am always scanning the financial markets for existing trends is that once I find one, one of the easiest ways for make money in futures is to find an existing trend and then position myself to enter that trend. One must first find a trend, before one can trade it. Lately, I have set a goal for myself to scan more broadly to locate trends, so that I can ride those trends like a surfer rides a wave. Here was a post from a few weeks ago on the subject:
Don't Just Trade With the Trend. Find It!
One reason why I am always scanning the financial markets for existing trends is that once I find one, one of the easiest ways for make money in futures is to find an existing trend and then position myself to enter that trend. One must first find a trend, before one can trade it. Lately, I have set a goal for myself to scan more broadly to locate trends, so that I can ride those trends like a surfer rides a wave. Here was a post from a few weeks ago on the subject:
Don't Just Trade With the Trend. Find It!
Australian Dollar (Aussie)
Canadian Dollar (Loonie)
New Zealand Dollar (Kiwi)
