USING FX FUTURES CHARTS TO ANALYSE THE FOREX MARKETS

If you’re short of time or struggle to analyse 30+ Forex Markets regularly then here is a way to quickly filter through to the high probability charts. By using Currency Futures charts we can very quickly look for relative strength of Currencies to help pair the strong against the weak. We can do so by using traditional Technical Analysis to identify trends, patterns or even trade signals, before pairing the strongest currencies with the weakest. The free www.finviz.com charts below consist of daily: AUD, CAD, CHF, EUR, GBP, JPY, NZD, USD.

By ordering the charts by strength of the underlying trend (most bullish to least bullish etc.) we could decide to arrange them like so.
Bullish Charts (Strength)
EUR
CHF
NZD
GBP
CAD
Bearish Charts (Weakness)
JPY
USD
Using this information we could look at the following currency pairs for bullish or bearish set-ups on the daily timeframe or lower.
Bullish
EURJPY
CHFJPY
EURUSD
CHFUSD (inverted to bearish
Bearish
USDCHF
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By looking at the chart above we can see how 4 most powerful currency pairs appear from the list above. Although I wouldn’t look to trade these chart immediately they would be in my watchlist for potential trades, waiting for a suitable pullback and trade signal. Additionally now the most powerful trends have been established you could also look at the intraday timeframes on the same charts for trade set-ups in line with the daily trend. Whilst in these particular examples the charts do not generate actual trade signals, you can in fact use techniques such as Japanese Candlestick patterns to plan trades your trade.
For example: If USD generated a Morning Star Reversal pattern and the JP
Summary
– I use the above technique as part of my weekly FX analysis
– This technique can be used on any timeframe
– Can be used to filter trends, patterns or trade signals

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