A1 Trading Company

December 21, 2022

3 Pairs to Avoid (For Now)

Michael J. Donoghue
3 Pairs to Avoid (For Now)

As many readers are aware, the EdgeFinder, A1 Trading’s market scanner, can be incredibly helpful in the process of discerning which assets are worth watching for potential trade setups. Whether someone is planning on buying or selling currency pairs, commodities, indices, or more, EdgeFinder analysis is so holistic that its ratings and biases can be a go-to supplement for bulls and bears. However, one feature of the EdgeFinder’s that is rarely mentioned, yet quite meaningful, is its generation of ‘0’ ratings and ‘Neutral’ biases. Most days, there is a small handful of assets that earn these reviews; rather than being irrelevant, these ratings can be quite beneficial to keep in mind, as they alert traders to a high level of uncertainty. With that in mind, here are 3 pairs to avoid (for now), as they currently earn such ‘0’ ratings, warranting caution.

1) AUD/CAD - Earns a ‘0’ Rating, or a ‘Neutral’ Signal

3 Pairs to Avoid (For Now)
Both currencies display some substantial degree of weakness relative to other currencies' host countries, such as Australia's unaggressive central bank, or the Canadian Dollar's relationship with (recently falling) oil prices as a 'commodity currency'.

2) NZD/USD - Earns a ‘0’ Rating, or a ‘Neutral’ Signal

3 Pairs to Avoid (For Now)
Both currencies display some substantial degree of strength relative to other currencies' host countries, with both boasting solid GDP growth and fairly hawkish central banks.

3) GBP/CAD - Earns a ‘0’ Rating, or a ‘Neutral’ Signal

3 Pairs to Avoid (For Now)
As with AUD/CAD, both currencies here suffer from some substantial degree of weakness relative to other currencies' host countries, such as the UK's looming stagflation problem (recession combined with high inflation), and institutional bearishness for both the Pound and Canadian Dollar.

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