Crude and the Dow: Trading forex with other markets
Forex traders are uniquely positioned to take
advantage of movement across multiple markets.
There are some dollar correlated majors that are not currently tracking with the U.S. Dollar. Two of these pairs are the dollar-canada and the dollar-yen.
Each of these pairs spent much of ’07 tracking with other markets.
The current chart patterns are best when set up in sideways markets so they must occur in either the accumulation or distribution market cycles.
The rectangle pattern in the USD/JPY has an interesting option to playing a breakout. Instead — because of the current market cycle and the width of the pattern — you can short the resistance and buy support.
The USD/CAD has a more classic breakout/breakdown set up with the symmetrical triangle.
The 1.0000 level will be one to watch as this is an important psychological level. The breakdown will require that this level be broken.
Both these pairs have excellent secondary confirmation from markets other than the U.S. Dollar Index futures. Check out the video here. Fore a free 21- day trial of Autochartist visit www.autochartist.com.