Tuesday, January 27, 2015

9 Currency ETF's That May Influence Your Trading Strategy



Many Forex Traders and Investors have asizable interest in what may be happening to various currenciesregarding their trading strategy. Today I will gather someinformation on a group of ETF's related to several of the heavilytraded currencies.

  • Currencies are volatile today and will be more volatile as weeks pass.
  • Countries are manipulating their currencies to gain advantages and export markets.
  • Politicians are exploiting interest rates and QE programs to stimulate their economies


The following are the Guggenheim'CurrencyShares' Trust Vehicles:

Australian Dollar (FXA)
Canadian Dollar (FXC)
Euro (FXE)
Japanese Yen (FXY)
British Pound (FXB)
Swedish Krona (FXS)
Swiss Franc (FXF)
Singapore Dollar (FXSG)
Chinese Renminbi (FXCH)


As you can see, this list covers theimportant and most heavily traded currencies exclusive of the USDollar.

In another article I will explore therelationships of each of these currencies with the US Dollar.

Here is a chart from ETFScreen.comoutlining a comparison of the Relative Strength factor for the pastquarter. Of course, as each day passes there will be changes inRelative Strength factor and the order in the list will change.





This next chart illustrates acomparison in percent change for the past several months, I amassuming that the down slope is closely related to the climb in theUS Dollar.





This chart, from etf.com illustratesthe fund flows into each of these ETF's for the past month.






Of course we want to know what is inthe future for currencies and that is not easy to know, there havenot been many successful forecasters. However, there is one school ofthought that we can consult and that is based on past performance.

Point and Figure Charts are not theholy grail, however they have a good track record and for thispurpose they will cast some light on future direction.

Here is the P&F chart for FXA, theAustralian Dollar Trust, I point out the Bearish Price Objective.




Instead of posting a P&F Chart inhere, I will list the Price Objective (as at January 23,2015) foreach Currency ETF.(Source Stockcharts.com)

Australian Dollar (FXA) 70.00
Canadian Dollar (FXC) 84.00
Euro (FXE) 86.00
Japanese Yen (FXY) 62.00
British Pound (FXB) 210.00
Swedish Krona (FXS 82.00
Swiss Franc (FXF) 151.00
Singapore Dollar (FXSG) -
Chinese Renminbi (FXCH) -

(FXSG and FXCH unavailable)



I will be updating the information on each of these currencies and ETF's in coming days.









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