 Hello all, I thought I'd make a video. I had a message from Liam, a new member not cat and pee, but Liam who said that Sorry, I'm reading it off screen. Is there a chance I could send a watch list of the currency pairs? I will I work towards so he can start plotting Charts and getting a general understanding and put everything we talk about and discuss together, right? So What we generally want to do when we are looking at the fundamentals is we're looking towards the fundamental analysis spreadsheet first of all and Generally, this applies to a risk-on Scenario, so if risk was on, you know, then this would be the ranking So what we're looking to do is we're looking to trade, you know that the stronger currencies which is the Australian dollar at the moment the United States is number two New Zealand's number three and Canada number four, so it would it would be pretty much the commodity currencies against five six sevens and eights eight being the weakest and But at the end and what we really really want to do is is choose the The pairs that are diverging the most the currency that diverging the most so you would want to choose one versus eight or two versus seven or three or one versus Six for example or two versus eight two versus seven two versus six. So that's how we kind of choose our currency pairs so She say but we're in a risk-off environment and in a risk-off environment at the bottom is a note so What tends to strengthen are the red currencies? So red being the Japanese yen and the Swiss and the Swiss franc but also what's not on here is that the The commodity currencies which are the New Zealand dollar Canadian dollar on Australian dollar will tend to weaken in a In a in a risk-off environment, so let me just go to the room, I think it was it was earlier today and I'm sorry discussion room and It was golden green had put together a Slide a couple of slides earlier in the day and This really kind of captures Where money typically goes and I say and I get I'm going to use the word typically lightly You know, it's a probabilistic nature as not all risk-off and risk-on scenarios are the same Yeah, so we have to think a bit deeper about what you know risk-off Environment and how it's going to affect, you know Well where money is going to flow into but typically what happens is is that in a risk-on environment equities? So for example stocks go up and in a risk-off they go down, which is what is happening right now Commodities oil copper tend to go down Which is basically what's happening with oil in a risk-on scenario they go up and so on and so forth Yeah, so again currencies Whatever high beta means Australian dollar New Zealand dollar the CAD and probably emerging markets EM In a risk-on scenario they go up In a risk-off scenario they go down And so on and so forth so actually I might take this and add this to the fundamental analysis spreadsheet somewhere Or if somebody who has access could do that for me That would be brilliant because I'm not necessarily the best at spreadsheets, but this pretty much, you know Shows you exactly what typically happens Yeah, in a risk-on and risk-off scenario. So thank you for that golden green now How does that relate to to pairs so What Liam wants to know is you know what typically happens With a currency pair. So how do we pick currency pairs? So if we know that there is a risk You know the pairs that we should be trading. Let's look at for example Let's go through the list and and understand why I've got these tabs as red Yeah And some of them that obviously haven't got tabs or if there was any green tabs, right? So Ozzy cat Now we're looking for divergences first of all They're both commodity currencies in a risk-off environment. Do you want to even look at this currency pair? You know when it comes to Trading fundamentally no because it's a bit more difficult to read Yes, you can probably look at this technically you can look at any chart from a technical analysis perspective, you know but from a Fundamental perspective, it's not something that I'm you know, I'm even looking at and trying to guess So it's not on my list now. Ozzy Swiss would be because Ozzy is a Is it is affected by the risk on a risk-off sentiment? And so is the Swiss Frank and they're diametrically opposed Yeah, so what then I'd be looking for is any setups to the either the long or the short side Yeah now going back to the Ozzy cat That doesn't mean that I would never ever ever trade the Ozzy cat because what we're actually looking for in currencies is we're trading Divergences so is if we're in a risk-on scenario now Let's say for example in a risk-on scenario, but the Australian dollars economy is doing really well But the Canadian dollar for some reason all the Canada's economy isn't doing so well. They're cutting rates. They've got low inflation, etc. Etc. Yet the Australian economy is doing really well. It's growing inflation is at the 2% target. There's a divergence there between, you know, where the Countries are in their economic cycle inflation and interest rate cycle. So there's a divergence there at the moment There's no divergence. Yeah between the two currencies both currencies are struggling both currencies of commodity currencies So, you know, both currencies are cutting rates, etc. So there's no divergence there Ozzy Swiss there is because typically money should go into the Swiss franc in a risk-off scenario Hence we've seen from pretty much the beginning of the year or at least from February when the coronavirus really has decided to you know enter into the the news Cycle, I mean it was always there, but you know into the mainstream, I guess You know, you can see what typically happened with price downtrend same thing with the Ozzy Yeah downtrend, yeah Ozzy so again Ozzy, New Zealand, we wouldn't look at the Ozzy, New Zealand because like the Ozzy CAD they are Pairs that are That are competing, yeah Ozzy does a dollar, sorry Australian dollar US dollar now this would be a pair that I would be looking towards because typically typically the The the US dollar can be used as a safe haven. Yeah, so outside of the yen and the Swiss franc the Australian dollar tends to do what we can in a risk-off environment and the US dollar will Strengthen in a risk-off environment in a risk-off environment or tends to anyway or can do so that's on my list to show CAD Swiss exact same things a CAD Swiss Canadian dollar being a a A Commodity currency Swiss franc being a risk-off currency diametrically opposed that's on the list CAD yen on the list now CAD Sorry Swiss yen is is on the list and it's the reason why it's on my list is because out of two Even though they're not necessarily diametrically opposed that the yen Out of the two risk-off currencies will say will but they they again typically tend to is more likely To be the stronger out of the two again It depends on the risk of situation if it's risk-off that doesn't affect the Swiss But does affect the yen then obviously that's something, you know, that's that's that's different if you know I mean, but with an overall risk-off perspective of the virus The yen should typically strengthen, you know in this environment So you've seen before the coronavirus then after coronavirus you've had, you know short in opportunities So any kind of pullbacks to these levels and above that level is where I'd be looking to potentially get short Euro Swiss. I'm in this trade at the moment I'm also in the the CAD Swiss from all the way up here as well So I'm still holding this trade from from up here but Euro Swiss Got in at this. This is a nice stop-hunt here So at the time it was just looking for stop-hunts around supply zones and looking for short trades. So Certain targets have been met and now it's just a case of holding the trade and see how far I can go so A Little bit anyway, so a little bit was taken off at two to one little bit was taken off at Fair value and then a little bit was taken off at the 80% levels and now what a really small position Left in the market can't lose. So let's see how far it can go to the downside, but from a Pairs perspective there we are It's pretty much clear that the Swiss Frank is the risk-off currency that to buy and the Euro at the moment isn't Euro pound not fantastic. It's not clear to me. Anyway, it might be clear to somebody else But not to me which way you should be buying or selling there really wasn't really nice Stop-hunt daily stop-hunt and maybe a weekly one as well above the market pattern, but From a fundamental perspective I'm steering clear of the Euro pound. It's not one of my radar Euro yen on the radar nice trade from up here. I didn't manage to get an entry here I was a bit annoyed about that because I was watching this and that didn't get in but look and look would look up Pretty much what happened again the yen being the what risk-off currency and a nice supply zone top of a supply zone anyway, and Look at what's happened. So, you know, it's pretty much just understanding which direction you should trade So that's on the list is a sell the red represents sell so you're a dollar You're a dollar sell as well up into a supply zone very nice trade that and our few traders are in this at the moment Dollar being the stronger at a two again pound Aussie Not too sure fundamentally which one should be buying or selling personally so that's not on the list same thing with pound CAD Pound Swiss obviously the Swiss Frank should be the one to buy so looking for any kind of supply zones And what makes it easy? I mean, I do have demand zones here to be fair I do have demand zones on here But the only reason why I have demand zones on here is but is to kind of just for educational purposes To show traders where demand zones actually are if I had my own chart I wouldn't really put demand zones on here There'd really be no need to but you know You can clear your chart up if you really wanted to just by having Direction or the supply zones that you want or the demand zones that you want and that that kind of indicates the direction You should really be trading and Sorry pound yen. I'm in this trade From around here This high around this It's level here, so let's see what actually happens I think this is potentially should want to roll over again the yen being a risk of currency pound New Zealand again, New Zealand being a commodity currency the pound. We're not not sure it's not clear So don't trade it. What's it? I can't say not to trade it, but it's not clear to me So it's not on my list not on my watch list Pound dollar again, it's on the list because of the dollars Strengthening the strengthening nature if you know, I mean, they're the best of the worst or out of these two anyway So again supply zone and then it's coming down slightly New Zealand CAD to commodity currencies not interested in that New Zealand Swiss I would be interested in this. I think there was a bit of a stop-hunt at the top here, which I managed to miss I think it was on Monday. Yeah, I had my alert set Here and I think the stop-hunt happened over in the early hours of the morning, so I Didn't manage to get in on that one, but that would have been one to well one commodity currency one risk-off currency same thing New Zealand yen Short trade New Zealand dollar similar thing where you've got Commodity currency, which doesn't tend to do well in the dollar, etc Dollar CAD, I guess that could be on on the buy list as well It could have been on the buy list it did react off of this demand zone here the top end of this demand zone Gone up to maybe a couple of hundred pips as well. So that could have been a decent trade Really truly actually should be on my list to buy when I think about it dollar Swiss is not on my list even though it's gone in its direction simply because You've got two currencies kind of competing to risk-off currencies. Yes, the Swiss should typically be Stronger than the dollar in a risk-off environment, but there are better pairs to trade So I didn't include that in it even though that was a very nice You know move demand zone wise And dollar yen dollar yen, so we've got It didn't quite Yeah, so there was a demand zone there so you can see It did react but again, is that on my list of things to trade note The reason why is because the yen should typically strengthen over the over the dollar But also as well If I'm gonna buy the yen, sorry if I'm gonna buy the yen then it's not gonna be against the dollar I'm gonna buy the yen against what is typically known as a weaker currency So at the moment the CAD the Australian dollar and the New Zealand dollar So that's pretty much how it goes and the dollar itself has come down to this really nice A really nice demand zone and has and Really has reacted quite nicely to that now We don't know how far is it gonna continue, but you can see with the dollar strength at this demand zone Confluence nice fair value between the low and the high and Then we've had a few days now. We've got some obviously some news coming out But that's for another video, but that's how to Really pick you know how we pick our pairs and Depending on obviously the situation fundamentally these will change, you know Depending on the risk on risk off what's happening locally and stuff like that So every I would say probably if you could if you can every day, you know look at you know your your currency Watchlist Also look at the fundamental analysis spreadsheet When we When we you know When this if this changes pretty much look it on a daily base I need to update this as well Just to make sure all the numbers are correct But at the end of the day even if numbers aren't correct it we're in a risk-off environment So the yen and the Swiss franc and really the United States should still be the ones to buy even if this is Slightly, you know the numbers slightly are Maybe off a little bit. All right. Hopefully that helps and take care So if what I'm saying resonates with you why not check out trading 180 comm there is a Selection process to trade my supply and demand zone forex strategy. I'm only looking to work with Individuals with the right mindset. You know who are hard working as well. So Check that out And access really for less than one pound a day this some of the strategies in here are not for beginners So if you don't know what supply and demand is please check out all of my Supply and demand videos. I have hundreds of videos on YouTube. So you can check that out first Guys take care and until the next video. Have a good one