How does divergence in forex affect cryptocurrency trading strategies?

1 answers

• Nov 27, 2021 · 3 years ago
  Divergence in the forex market can have a significant impact on cryptocurrency trading strategies. When there is divergence between the movements of major forex pairs and cryptocurrencies, it can signal potential opportunities or risks for traders. For example, if there is a strong bullish divergence in the forex market, where major currency pairs are trending upwards, it may indicate increased demand for fiat currencies and a potential decrease in demand for cryptocurrencies. This could lead to a decline in cryptocurrency prices and affect trading strategies that rely on bullish trends. On the other hand, if there is a bearish divergence in the forex market, where major currency pairs are trending downwards, it may indicate a decrease in demand for fiat currencies and a potential increase in demand for cryptocurrencies. This could lead to an increase in cryptocurrency prices and affect trading strategies that rely on bearish trends. It's important for cryptocurrency traders to closely monitor divergence in the forex market and adjust their strategies accordingly.
  1080540