What do you do when EURUSD is bullish, and say, the EURNZD is bearish?
Yesterday I wrote about the EUR crosses, I mentioned that most of them are in a bullish condition, therefore I’m looking for long opportunities on most of them.
But what if you had one of the EUR crosses in a bearish condition? How do you deal with it?
Here is how I do it.
As you already know, most of the EUR crosses are in a bullish condition, including: the EURUSD, EURGBP, EURCAD and EURJPY.
But that’s not the case for the EURNZD, in fact, the EURNZD is actually trading in a bearish condition. Yesterday it broke through an important support level and the bearish condition was triggered. Here is the chart:
How do I deal with this?
I don’t care…
I don’t take a trading decision based on what is happening on other currency pairs. If the EURUSD is bullish, then I look for long opportunities on the EURUSD, if the EURCAD is bullish, I also look for long opportunities on the EURCAD. But I don’t take a trading decision on the EURUSD or the EURCAD because of what’s happening to the EURNZD…
It wouldn’t seem right? Would it?
Is it possible to have the EURUSD going up while the EURNZD going down?
Of course, it’s all about the relationship of currency pairs. For instance, the EUR is stronger than the USD (therefore the upside movement) . And at the same time, the NZD could be even stronger than the EUR (therefore the downside movement).
What do you think? How do you deal with it?