FOREX: Shifting Trends
The FOREX currencies are markets that rest on the shifting grounds of TREND.
If you have an opinion on the currencies that’s more than a few week’s old, you’d better ditch that opinion and, instead favor the Reality described by the price charts themselves.
Generally, everyone has become comfortable with rising foreign currencies and a falling dollar. It took a while to make that shift, but, now most are ‘on board’ with this as the ‘norm’.
It looked like these charts. Note the colored blocks indicating the trends going into May.
These trends were clearly up (excepting the US Dollar) for over a month running going into May..
However, just as enough time set in to assume a new direction as being ‘established’, every one of these major Forex currencies shifted.
Some, like the New Zealand Dollar, led the break to the downside.
The stronger of the currencies like the Canadian Dollar (CAD) and Swiss Franc (CHF) held their trends longer and have only just broken down.
THE PRESENT STATE OF CURRENCY TRENDS
The chart below shows the trends that are presently in progress for the Currencies.
The US Dollar has now started back up again, while ALL the other majors are in a downswing. Keep this in mind even when trading on a daily basis as this momentum will assert itself over the course of daily price moves. – George