How to combine majors to cross pair trades

How to combine majors to cross pair trades

26 February 2020, 14:19
Daniel Stein
3
171

How to combine majors to cross pair trades

First, let's have a look at the majors in the FX Trend favorites

2602_fxt

AUDUSD, NZDUSD, and USDCHF are moving downwards on most of their time frames.

So let's do the following calculation:

AUDUSD down + USDCHF down = AUDCHF down 

NZDUSD down + USDCHF down = NZDCHF down

So besides the major pairs, we do have two cross pairs to be considered as well.


Let's check the charts in detail beginning with AUDUSD

2602_AU

After a stagnation period we are facing almost perfect conditions for a further down move.

Trends are perfectly in line (above M5), there is no support level in sight and FX Power confirms with perfect strength pattern.

That's a clear AUDUSD SELL trade!

Let's see how it looks at NZDUSD

2602_NU

And once again we can see the extreme correlation between both pairs. Their charts are almost identical.

NZDUSD is a bit closer to the last SR level but the trend and strength situation is perfect for a SELL trade.


Let's head on to USDCHF

2602_USDCHF

USDCHF stopped at at resistance level and has been unable to break through.

In addition we see a mixed picture from FX Power which announces a sideways period on that pair.

So there is no down force to expect from that pair.

AUDCHF

AUDCHF

AUDCHF shows perfect downtrend conditions and if the downtrend on AUDUSD continues we can benefit here as well.


NZDCHF

2602_NZDCHF

Same situation here. Perfect conditions for a NZDCHF SELL trade.


So we do have 4 trading opportunities in total - 2 at the majors and 2 at the cross pairs

Will you find more good AUD and NZD setups? Then please share in the comment section


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All the best and happy trading
Daniel



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