Exchange Rates UK TV: Quick review of how the DXY, GBPUSD, GBPJPY (pairs we’ve looked at this week) have done. RRG (Relative Rotation Graphs) help us predict future trends in the Forex markets – we review that today as well.
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Good afternoon. Good morning. Good evening, everyone, welcome to Exchange Rates UK TV, we’re going to do a little bit of a weekly overview, and a future outlook.
So beginning of the week, we reviewed the US Dollar Index and anticipated a corrective move, not a trend reversal, and we are seeing as the day goes on here, we’ve got a couple hours left in the trade day for the end of the trade week. But definitely, we see that the Dollar index on the weekly chart has shown us a strong case for prices moving up and and possibly moving higher into next week.
The weekly Tenkan Sen is right here, and you know, that’s going to be the first test of it we’ve had since the week of November 23.
This is a natural resistance area, however, given the long drawn out nature here and and reflecting back to the status of these oscillators, this move here is pretty warranted, and I’m anticipating it moving all the way back up to the Kijun Sen near 9268.
As far as the rest of the currencies are concerned, we can see a broad kind of a turnaround, we talked about the Pound-Dollar this week, having a probability of moving further south. On the daily we can see that definitely occurring today.
The Pound-Yen discussed that yesterday about facing some downside pressure.
But all around want to call your attention to this here. So this is a chart known as an RRG, a relative rotation graph. And so these are the pairs that I trade. And basically what we look at is four quadrants here top left is improving, top right is leading, bottom right is weakening, and the bottom left is lagging.
And so it’s the performance of all these currency pairs there compared against the US Dollar index. And so what we have, if you look at this is a good way to think about it is things in the leading category are the ones that are outperforming like if this was a car race, they’re the ones ahead, they’re in first second third place.
Weakening means that they are losing steam, they’re getting overtaken, they’re dropping behind, they’re getting into the middle of the pack and is swiftly kind of moving backwards.
And as you transition from weakening to lagging, lagging means you’re pretty much in last place and that everybody else is in front of you.
Improving means that you are moving back up in the race, you are getting into the middle of the pack and your acceleration is improving, you are anticipating moving…
Go to the news source: Forex Weekly Analysis & RRG Future Trend Prediction