Thank you very much for creating this threat, it is very instructional for new traders.
I'm learning how to trade "conservative" currencies (JPY, USD, and CHF) vs "liberal" currencies AUD (and NZD), CAD, and EUR.
In general they what we call "conservative" currencies, as a whole group gain strenght when the "liberal" currencies loose it, creating cicles with opportunities.
See the attached drawing with the AUD/JPY (most volatile pair) reaction to the debit crisis late 08. Notice at the bottom the relative strenght of each currency.
I'm trying to learn more about your amazing view of the whole picture and apply it. I don't have the knolowdge to do so, so now I'm looking for the books you suggested, but I have questions about them:
- Fundamentals and Intermarket Analysis: I found two books with the same name, one of them is Louis B. Mendelsohn and the other is Asraf Laidi Which one is the one that you recommend?
- Victor Sperandeo has many books published, would you recommend Trader Vic II for Forex applications?
I look for the opportunities in the short term.
Would you cuncurr that in this week what we call "liberal" currencies AUD, NZD, CAD and EUR will get strenght agains the conservative (JPY, USD, CHF) creating opportunities to sell AUD/JPY; AUD/USD; NZD/JPY; NZD/USD; CAD/JPY; CAD/USD etc...?
Once again, thank you for the guidance.