The Great Thing About the FX Market
While most FX
traders do not follow currency pairs that extend beyond the usual bunch,
i.e. EUR, GBP, CHF & JPY – they may be doing themselves a disservice.
Like any market, a technically inclined
trader should trade whatever has the best technical set-up, if that means
looking beyond your universe of 4-5 currency pairs, then I would advise doing
so. The great thing about the FX market is that there are only a limited number
of FX pairs one can monitor, perhaps 20-25, the result is that you do not become
stretched too thin by trying to sort through hundreds of trade set-ups as is
often the case with stocks.
I tend to trade some of the less followed FX
pairs and FX crosses when the dollar becomes more volatile than normal as a way
to avoid getting whipsawed. The short in NZD/JPY presently from 81.20 is
a good example of a trade that is not too correlated with dollar moves.
Below is a chart of USD/NOK (Norwegian krona)
– a trade that I like.
As always, feel free to send
me your comments and questions.