As written in 18 currency pair trade rankings, USD/EM and EUR/EM wasn’t very appealing this week to trades and reveals a fairly neutral market. A neutral market must then take the next best view and that is found in CAD/ZAR and written many times over the years.
EUR/USD’s perfect opposite currency is CAD/ZAR as CAD/ZAR serves the expression as a USD currency. Over many months this year, EUR/USD and CAD/ZAR were deeply married as movements in both pair contained dead ranges. This is now changing as EUR/USD and CAD/ZAR ranges are opening wide, slowly week to week yet widening. This is encouraging to overall better weekly trades ahead.
EUR/USD as written contains a long only strategy while CAD/ZAR is opposite as a short only strategy. This is the same as saying long EUR/USD and short USD currencies. Viewed from oversold GBP/USD then overbought GBP/ZAR comports to oversold GBP/USD.
We’re short USD/CAD this week as overbought CAD/EM complies to shorts. A comparison from the next set of opposite currencies, GBP/USD V USD/CAD reveals GBP/EM is oversold and overbought for CAD/EM yet not universal throughout all currencies.
The currency system contains 476 currency pairs and its quite easy to view any currency for trade purposes in minutes.
CAD/EM is much aligned as NZD/EM as the best trades are located in CAD/Europe.
CAD/BRL 4.1905 decides longs and shorts.
CAD/CNY oversold, long 5.1626 and 5.1572 to target 5.1733.
CAD/CZK oversold, long 17.19 and 17.1764 to target 17.2029.
CAD/DKK overbought, short 5.0428 and 5.0472 to target 5.0339.
CAD/HUF oversold, long 238.74 and 238.41 to target 239.18.
CAD/MYR overbought, short 3.3882 and 3.3926 to target 3.3711.
CAD/PLN overbought, short 3.1015 and 3.1052 to target 3.0867.
CAD/ZAR deep overbought, short 11.7549 to target 11.6993.
CAD/EM contains 4 overbought currencies, 3 oversold and 2 undecided.
GBP/BRL deeply oversold, break 7.2606 targets 7.2369.
GBP/CNY oversold. 8.9809 decides.
GBP/DKK overbought, short 8.7630, targets 8.7447
Where EM becomes interesting this week and non compliant is CAD/EM contains the same trades as GBP/EM and NZD/EM and Europe is where the majority of movements will be seen and fairly neutral for EM/ASIA.
View more information: https://www.fxstreet.com/analysis/currency-market-cad-zar-cad-em-gbp-em-202108160246