The forex market offers different currencies of major countries to trade. With a daily trading volume of more than $5 trillion, the forex market has one the largest trading volume of financial markets. Major currency pairs are available to trade on trading platforms offered by the forex brokers.
But the current situation of the economy with the corona crisis has touched many global countries. The value of global currencies has seen a decrease in the financial markets. And this article will guide through the currency pairs to find short opportunities in the forex market.
USD/RUB is one of the most traded pairs with the Russian currency (ruble). USD/RUB has an average of 100 pips volatility per day. The pair currently is trading on a value of 73.400 rubles per dollar. Since the oil price started to go down because of major economies, USD/RUB has started a downtrend. The pair was trading at 80.100 value of rubles, but with the recent events, a bearish downtrend of more than 500 pips has started.
Another reason why the USD/RUB can be a great short opportunity has to do with the stock market. Major American stock company’s values have slumped and this has affected the forex market. Currently, USD/RUB is on a strong downtrend and with the crisis on oil and economies, we may see the downtrend continuing more further.
Compared to other country economies, the economy of Sweden has maintained stability during recent events. Major American stocks have started to fall down because of the current economy affected by the unemployment rate. But the Scandinavian country, Sweden hasn’t declared a lockdown and this has reflected on a stable economy.
Since the crisis with lockdown began in the United States, USD/SEK has started to weaken. Months ago the pair was trading at a value of 10 Krones per dollar and has fallen to value 9.73 Krones per dollar. USD/SEK is on a bearish moment trend, and with the downtrend began months ago, USD/SEK can fall to 9.70 Krones per dollar again.
Another currency pair that can be a great short opportunity in the forex market, is EUR/JPY. The current economic situation with European countries has resulted in weaker euro currency. With many countries in lockdown, tourism in European countries has fallen to low numbers.
Compared to the European countries, Japan has suffered a hit on the economy, but the Yen currency has started to recover. And this has affected EUR/JPY currency pairs in the forex market. EUR/JPY was trading on a strong bullish uptrend reaching the price of 120.100 Japanese Yen.
Since the European economy started to slump, the value of EUR/JPY reached a value of 114 Japanese Yen. The decline in the value happened in a period of two months and Euro has recovered only 100 pips since the lower price. And with the value continuing to fall, the EUR/JPY currency pair can be a great short opportunity in the forex market.
The British pound during the march has fallen to an all-time low value of 1.41 pounds. It’s one of the lowest values of the British pound since the 70s. The current economic situation has lead to a massive pound downfall in the forex market. Currently, GBP/AUD is trading at 1.88 pounds, with an average of 150 pips movement per day. If the lockdown in the United Kingdom continues still, then the price can fall further.
The situation with lockdown has affected the economy of New Zealand. Borders closed, tourism and jobs affected by lockdown have resulted in the fall of the economy. The predictions of economic experts, that GDP will drop to more than 20% in the second quarter, have had a negative effect on NZD value.
NZD/CHF currency pair on the forex market reached the highest value at 0.65, during this year. But the fall of NZD/CHF started to began during the peak price, when the currency value dropped to 0.52 NZD in April. Since then, NZD/CHF has recovered somehow with an uptrend by reaching the value of 0.60 NZD.
But the uptrend didn’t last too long, as the price has fallen down now to 0.57 and the CHF currency maintained stability on the value. The price NZD/CHF could recover with the New Zealand economy climbing. But the current situation in the longterm most likely will provide a short opportunity on the forex market.
The examples we give on our blog are based on our analysis. But you as a trader should always trade according to your analysis.