Use the Data Base bellow: (Show your work)

13. This exercise requires you to research foreign exchange rates with data from FXStreet a global provider of information and resources for traders. a. Go to the "live chart" facility at www.fxstreet.com. Use the facility to plot a "candle stick" chart of the EUR/GBP cross rate for: (i) 5 minute intervals for one day (intra-day) (ii) daily intervals for one month (daily) and (iii) weekly intervals for one year (weekly). Compare the three graphs and explain what is being plotted in these graphs. Cover the units of each chart, show them to one of your classmates, and ask her/him to try to identify each one as to whether it is intra- day, daily, or weekly. Is your classmate able to identify these correctly? Are you surprised? b. Use the "live chart" facility and the EUR/GBP cross rate to explore forecasting techniques used by chartists. Are you able to identify a golden/death cross? Head- and-shoulder pattern? If you are not able to identify one of these using the EUR/GBP cross, is there another cross rate pair that displays one of these patterns that can be used by chartists. What would be the recommendation regarding the foreign exchange rate strategy from your investigation? 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 01/01/2008 01/02/2008 01/03/2008 01/04/2008 01/05/2008 01/06/2008 01/07/2008 01/08/2008 01/09/2008 01/10/2008 01/11/2008 01/12/2008 01/01/2009 01/02/2009 01/03/2009 01/04/2009 01/05/2009 01/06/2009 01/07/2009 01/08/2009 01/09/2009 01/10/2009 01/11/2009 01/12/2009 01/01/2010 01/02/2010 01/03/2010 01/04/2010 01/05/2010 01/06/2010 01/07/2010 01/08/2010 01/09/2010 01/10/2010 01/11/2010 01/12/2010 01/01/2011 01/02/2011 01/03/2011 01/04/2011 01/05/2011 01/06/2011 01/07/2011 01/08/2011 01/09/2011 GERMANY 0.68397 0.67465 0.65783 0.64121 0.64723 0.64398 0.63474 0.64261 0.68542 0.71418 0.78376 0.79393 0.7194 0.78091 0.79431 0.75594 0.75455 0.70636 0.70766 0.69367 0.69913 0.68674 0.67488 0.66254 0.69699 0.71966 0.74192 0.73869 0.75901 0.81384 0.80289 0.75841 0.78003 0.72746 0.72005 0.76552 0.74839 0.72506 0.72312 0.70691 0.67152 0.69322 0.69049 0.70418 0.70173 JAPAN 111.715 106.25 103.385 101.875 104.08 104.545 105.985 107.525 108.135 105.57 98.94499 93.83499 90.64999 89.84999 97.56499 98.825 99.33499 96.625 96.66499 95.19499 93.105 89.61499 90.5 86.685 93.09499 90.77499 89.39 93.96999 94.50999 91.28999 87.06 86.45999 84.55499 83.28499 80.67 84.23 81.69499 81.5 82.045 84.34499 81.06999 80.84999 80.89 76.61499 76.98 Exchange Rate (Foreign per USD) CHINA INDIA CANADA 7.3041 39.415 0.98695 7.189 39.355 0.99775 7.1041 40.38 0.98965 7.0116 40.12 1.03145 6.9875 40.485 1.0215 6.933 42.405 1.00045 6.8561 43.335 1.02305 6.8425 42.355 1.02775 6.8256 44.185 1.0689 6.8485 46.625 1.06225 6.8381 48.655 1.1925 6.8848 50.275 1.24535 6.823 48.72 1.2345 6.8487 48.925 1.237 6.8458 51.915 1.28745 6.8343 50.735 1.26785 6.823 50.035 1.1904 6.8265 46.965 1.08505 6.8331 47.89 1.14805 6.8308 47.635 1.0656 6.8304 49.04 1.095 6.8263 47.74 1.0732 6.8279 46.965 1.075 6.826 46.3125 1.0432 6.827 46.535 1.04835 6.8274 46.375 1.06635 6.8263 46.105 1.0466 6.8263 44.895 1.00895 6.8252 44.52 1.0145 6.8302 47.155 1.04595 6.781 46.585 1.0638 6.7742 46.245 1.02195 6.8115 46.81 1.05005 6.6912 44.475 1.0236 6.6899 44.47 1.01345 6.6634 45.375 1.0196 6.5897 44.725 0.99035 6.5938 45.765 0.9923 6.5703 44.945 0.97355 6.5479 44.595 0.96445 6.491 44.335 0.94825 6.478 44.845 0.97245 6.4649 44.5825 0.9624 6.434 44.08 0.96005 6.3813 46.05 0.9758 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 01/10/2011 01/11/2011 01/12/2011 01/01/2012 01/02/2012 01/03/2012 01/04/2012 01/05/2012 01/06/2012 01/07/2012 01/08/2012 01/09/2012 01/10/2012 01/11/2012 01/12/2012 01/01/2013 01/02/2013 01/03/2013 01/04/2013 01/05/2013 01/06/2013 01/07/2013 01/08/2013 01/09/2013 01/10/2013 01/11/2013 01/12/2013 01/01/2014 01/02/2014 01/03/2014 01/04/2014 01/05/2014 01/06/2014 01/07/2014 01/08/2014 01/09/2014 01/10/2014 01/11/2014 01/12/2014 01/01/2015 01/02/2015 01/03/2015 01/04/2015 01/05/2015 01/06/2015 01/07/2015 01/08/2015 0.75335 0.73121 0.74239 0.77033 0.75769 0.75008 0.75182 0.75614 0.80887 0.79466 0.81321 0.79472 0.77489 0.77298 0.76502 0.7585 0.73014 0.77018 0.77839 0.75798 0.76749 0.76714 0.75566 0.75824 0.73934 0.74143 0.73765 0.72572 0.73973 0.72603 0.72493 0.72121 0.73489 0.73102 0.74466 0.76121 0.79393 0.80099 0.80151 0.82641 0.88156 0.89322 0.92954 0.89107 0.91764 0.90074 0.91137 76.64999 78.28 77.70999 76.93999 76.12999 80.98 82.03999 80.16499 78.12 79.34 78.23999 78.25999 78.06 80.14 82.28499 86.465 92.60999 93.44499 93.25999 97.34499 99.56499 99.745 99.22499 99.355 98.09999 98.78 102.985 105.105 101.255 101.435 103.575 102.27 102.175 101.525 102.475 104.245 109.58 114.19 118.315 119.895 117.26 120.135 119.63 120.115 124.505 122.945 123.955 6.3859 6.3543 6.3635 6.294 6.3067 6.3002 6.298 6.3102 6.369 6.3488 6.3685 6.3407 6.2849 6.2405 6.2279 6.2303 6.227 6.2237 6.208 6.165 6.1317 6.1327 6.1305 6.1196 6.122 6.0995 6.0929 6.0539 6.06 6.1462 6.2069 6.2593 6.2473 6.2016 6.1798 6.1428 6.1395 6.1183 6.152 6.204 6.2597 6.273 6.198 6.2028 6.1995 6.2011 6.2097 49.155 49.275 51.465 53.105 49.27 49.215 50.945 52.7 55.89 55.595 55.485 55.535 52.625 53.76 54.675 54.79 53.19 54.905 54.35 53.875 56.8 59.4312 60.265 66.105 62.435 61.845 62.26 61.855 62.6925 62.03 59.7225 60.315 59.095 60.085 61.07 60.505 61.625 61.4162 62.0787 63.1225 61.865 61.9525 62.5812 63.515 63.69 63.615 64.0362 1.0487 1.01975 1.01735 1.01825 0.99745 0.98615 0.99335 0.98425 1.04095 1.01905 1.00095 0.98725 0.98035 0.99735 0.99365 0.9957 0.99895 1.02795 1.0168 1.00815 1.03455 1.05025 1.03285 1.0543 1.03255 1.04435 1.06375 1.0625 1.10535 1.10795 1.10285 1.09755 1.08945 1.0658 1.08985 1.0866 1.1185 1.13115 1.13815 1.15825 1.25875 1.25275 1.2642 1.21625 1.2543 1.2544 1.312 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 01/09/2015 01/10/2015 01/11/2015 01/12/2015 01/01/2016 01/02/2016 01/03/2016 01/04/2016 01/05/2016 01/06/2016 01/07/2016 01/08/2016 01/09/2016 01/10/2016 01/11/2016 01/12/2016 01/01/2017 01/02/2017 01/03/2017 01/04/2017 01/05/2017 01/06/2017 01/07/2017 01/08/2017 01/09/2017 01/10/2017 01/11/2017 01/12/2017 01/01/2018 01/02/2018 01/03/2018 01/04/2018 01/05/2018 01/06/2018 01/07/2018 01/08/2018 01/09/2018 01/10/2018 01/11/2018 01/12/2018 01/01/2019 01/02/2019 01/03/2019 01/04/2019 01/05/2019 01/06/2019 01/07/2019 0.88822 0.89254 0.90625 0.94273 0.92056 0.91798 0.92085 0.88145 0.86855 0.89506 0.89831 0.89514 0.89342 0.89142 0.90551 0.94237 0.94809 0.92946 0.94733 0.93875 0.91596 0.89083 0.87966 0.84674 0.84182 0.85208 0.86084 0.84271 0.83278 0.80189 0.82112 0.81238 0.83406 0.85741 0.86159 0.85671 0.8601 0.86322 0.87742 0.88125 0.87478 0.87199 0.87816 0.89119 0.88964 0.89274 0.88304 119.875 119.645 120.655 122.875 120.295 121.025 113.59 112.385 106.54 109.495 102.665 102.37 103.205 101.615 104.565 114.405 116.635 113.49 113.835 110.99 111.62 111.25 113.305 110.155 110.195 112.71 114.05 112.795 112.65 109.385 107.065 106.225 109.75 109.57 110.755 111.975 6.3645 6.3571 6.3379 6.3986 6.4936 6.579 6.5472 6.4648 6.4845 6.5825 6.6585 6.6391 6.6799 6.67 6.7749 6.8949 6.9495 6.878 6.88 6.8918 6.8974 6.8049 6.7904 6.7189 6.5685 6.6428 6.6156 6.6077 6.512 6.2958 6.343 6.2803 6.3449 6.4168 6.6534 6.795 6.8179 6.8806 6.951 6.8882 6.8657 6.736 6.7078 6.7107 6.7368 6.9096 6.8449 66.245 65.565 65.585 66.55 66.1563 67.845 67.925 66.2225 66.415 67.4225 67.345 66.765 66.995 66.5375 66.7375 68.3712 67.87 67.5375 66.825 65.04 64.33 64.5425 64.8587 64.0712 64.0223 65.32 64.5914 64.48 63.8275 63.8475 65.225 65.2217 66.74 67.0875 68.7387 68.4562 71.0675 72.865 73.5375 70.3725 69.815 71.2875 70.8675 69.275 69.5537 69.2662 68.9537 1.3206 1.3232 1.30865 1.3373 1.3891 1.4007 1.34435 1.30915 1.2537 1.30925 1.28965 1.3099 1.309 1.31335 1.3378 1.333 1.34105 1.3081 1.3352 1.339 1.36575 1.3484 1.2996 1.24865 1.23805 1.24995 1.28915 1.2733 1.25295 1.2282 1.2846 1.29045 1.2901 1.29545 1.3196 1.2981 1.3074 1.2825 1.31085 1.31915 1.3658 1.31 1.3241 1.334 1.3418 1.34765 1.31025 111.03 113.95 112.79 113.605 109.715 109.375 111.9 111.2 111.175 108.38 108.325 142 01/08/2019 0.90428 108.185 6.902 69.0587 1.3208 13. This exercise requires you to research foreign exchange rates with data from FXStreet a global provider of information and resources for traders. a. Go to the "live chart" facility at www.fxstreet.com. Use the facility to plot a "candle stick" chart of the EUR/GBP cross rate for: (i) 5 minute intervals for one day (intra-day) (ii) daily intervals for one month (daily) and (iii) weekly intervals for one year (weekly). Compare the three graphs and explain what is being plotted in these graphs. Cover the units of each chart, show them to one of your classmates, and ask her/him to try to identify each one as to whether it is intra- day, daily, or weekly. Is your classmate able to identify these correctly? Are you surprised? b. Use the "live chart" facility and the EUR/GBP cross rate to explore forecasting techniques used by chartists. Are you able to identify a golden/death cross? Head- and-shoulder pattern? If you are not able to identify one of these using the EUR/GBP cross, is there another cross rate pair that displays one of these patterns that can be used by chartists. What would be the recommendation regarding the foreign exchange rate strategy from your investigation? 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 01/01/2008 01/02/2008 01/03/2008 01/04/2008 01/05/2008 01/06/2008 01/07/2008 01/08/2008 01/09/2008 01/10/2008 01/11/2008 01/12/2008 01/01/2009 01/02/2009 01/03/2009 01/04/2009 01/05/2009 01/06/2009 01/07/2009 01/08/2009 01/09/2009 01/10/2009 01/11/2009 01/12/2009 01/01/2010 01/02/2010 01/03/2010 01/04/2010 01/05/2010 01/06/2010 01/07/2010 01/08/2010 01/09/2010 01/10/2010 01/11/2010 01/12/2010 01/01/2011 01/02/2011 01/03/2011 01/04/2011 01/05/2011 01/06/2011 01/07/2011 01/08/2011 01/09/2011 GERMANY 0.68397 0.67465 0.65783 0.64121 0.64723 0.64398 0.63474 0.64261 0.68542 0.71418 0.78376 0.79393 0.7194 0.78091 0.79431 0.75594 0.75455 0.70636 0.70766 0.69367 0.69913 0.68674 0.67488 0.66254 0.69699 0.71966 0.74192 0.73869 0.75901 0.81384 0.80289 0.75841 0.78003 0.72746 0.72005 0.76552 0.74839 0.72506 0.72312 0.70691 0.67152 0.69322 0.69049 0.70418 0.70173 JAPAN 111.715 106.25 103.385 101.875 104.08 104.545 105.985 107.525 108.135 105.57 98.94499 93.83499 90.64999 89.84999 97.56499 98.825 99.33499 96.625 96.66499 95.19499 93.105 89.61499 90.5 86.685 93.09499 90.77499 89.39 93.96999 94.50999 91.28999 87.06 86.45999 84.55499 83.28499 80.67 84.23 81.69499 81.5 82.045 84.34499 81.06999 80.84999 80.89 76.61499 76.98 Exchange Rate (Foreign per USD) CHINA INDIA CANADA 7.3041 39.415 0.98695 7.189 39.355 0.99775 7.1041 40.38 0.98965 7.0116 40.12 1.03145 6.9875 40.485 1.0215 6.933 42.405 1.00045 6.8561 43.335 1.02305 6.8425 42.355 1.02775 6.8256 44.185 1.0689 6.8485 46.625 1.06225 6.8381 48.655 1.1925 6.8848 50.275 1.24535 6.823 48.72 1.2345 6.8487 48.925 1.237 6.8458 51.915 1.28745 6.8343 50.735 1.26785 6.823 50.035 1.1904 6.8265 46.965 1.08505 6.8331 47.89 1.14805 6.8308 47.635 1.0656 6.8304 49.04 1.095 6.8263 47.74 1.0732 6.8279 46.965 1.075 6.826 46.3125 1.0432 6.827 46.535 1.04835 6.8274 46.375 1.06635 6.8263 46.105 1.0466 6.8263 44.895 1.00895 6.8252 44.52 1.0145 6.8302 47.155 1.04595 6.781 46.585 1.0638 6.7742 46.245 1.02195 6.8115 46.81 1.05005 6.6912 44.475 1.0236 6.6899 44.47 1.01345 6.6634 45.375 1.0196 6.5897 44.725 0.99035 6.5938 45.765 0.9923 6.5703 44.945 0.97355 6.5479 44.595 0.96445 6.491 44.335 0.94825 6.478 44.845 0.97245 6.4649 44.5825 0.9624 6.434 44.08 0.96005 6.3813 46.05 0.9758 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 01/10/2011 01/11/2011 01/12/2011 01/01/2012 01/02/2012 01/03/2012 01/04/2012 01/05/2012 01/06/2012 01/07/2012 01/08/2012 01/09/2012 01/10/2012 01/11/2012 01/12/2012 01/01/2013 01/02/2013 01/03/2013 01/04/2013 01/05/2013 01/06/2013 01/07/2013 01/08/2013 01/09/2013 01/10/2013 01/11/2013 01/12/2013 01/01/2014 01/02/2014 01/03/2014 01/04/2014 01/05/2014 01/06/2014 01/07/2014 01/08/2014 01/09/2014 01/10/2014 01/11/2014 01/12/2014 01/01/2015 01/02/2015 01/03/2015 01/04/2015 01/05/2015 01/06/2015 01/07/2015 01/08/2015 0.75335 0.73121 0.74239 0.77033 0.75769 0.75008 0.75182 0.75614 0.80887 0.79466 0.81321 0.79472 0.77489 0.77298 0.76502 0.7585 0.73014 0.77018 0.77839 0.75798 0.76749 0.76714 0.75566 0.75824 0.73934 0.74143 0.73765 0.72572 0.73973 0.72603 0.72493 0.72121 0.73489 0.73102 0.74466 0.76121 0.79393 0.80099 0.80151 0.82641 0.88156 0.89322 0.92954 0.89107 0.91764 0.90074 0.91137 76.64999 78.28 77.70999 76.93999 76.12999 80.98 82.03999 80.16499 78.12 79.34 78.23999 78.25999 78.06 80.14 82.28499 86.465 92.60999 93.44499 93.25999 97.34499 99.56499 99.745 99.22499 99.355 98.09999 98.78 102.985 105.105 101.255 101.435 103.575 102.27 102.175 101.525 102.475 104.245 109.58 114.19 118.315 119.895 117.26 120.135 119.63 120.115 124.505 122.945 123.955 6.3859 6.3543 6.3635 6.294 6.3067 6.3002 6.298 6.3102 6.369 6.3488 6.3685 6.3407 6.2849 6.2405 6.2279 6.2303 6.227 6.2237 6.208 6.165 6.1317 6.1327 6.1305 6.1196 6.122 6.0995 6.0929 6.0539 6.06 6.1462 6.2069 6.2593 6.2473 6.2016 6.1798 6.1428 6.1395 6.1183 6.152 6.204 6.2597 6.273 6.198 6.2028 6.1995 6.2011 6.2097 49.155 49.275 51.465 53.105 49.27 49.215 50.945 52.7 55.89 55.595 55.485 55.535 52.625 53.76 54.675 54.79 53.19 54.905 54.35 53.875 56.8 59.4312 60.265 66.105 62.435 61.845 62.26 61.855 62.6925 62.03 59.7225 60.315 59.095 60.085 61.07 60.505 61.625 61.4162 62.0787 63.1225 61.865 61.9525 62.5812 63.515 63.69 63.615 64.0362 1.0487 1.01975 1.01735 1.01825 0.99745 0.98615 0.99335 0.98425 1.04095 1.01905 1.00095 0.98725 0.98035 0.99735 0.99365 0.9957 0.99895 1.02795 1.0168 1.00815 1.03455 1.05025 1.03285 1.0543 1.03255 1.04435 1.06375 1.0625 1.10535 1.10795 1.10285 1.09755 1.08945 1.0658 1.08985 1.0866 1.1185 1.13115 1.13815 1.15825 1.25875 1.25275 1.2642 1.21625 1.2543 1.2544 1.312 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 01/09/2015 01/10/2015 01/11/2015 01/12/2015 01/01/2016 01/02/2016 01/03/2016 01/04/2016 01/05/2016 01/06/2016 01/07/2016 01/08/2016 01/09/2016 01/10/2016 01/11/2016 01/12/2016 01/01/2017 01/02/2017 01/03/2017 01/04/2017 01/05/2017 01/06/2017 01/07/2017 01/08/2017 01/09/2017 01/10/2017 01/11/2017 01/12/2017 01/01/2018 01/02/2018 01/03/2018 01/04/2018 01/05/2018 01/06/2018 01/07/2018 01/08/2018 01/09/2018 01/10/2018 01/11/2018 01/12/2018 01/01/2019 01/02/2019 01/03/2019 01/04/2019 01/05/2019 01/06/2019 01/07/2019 0.88822 0.89254 0.90625 0.94273 0.92056 0.91798 0.92085 0.88145 0.86855 0.89506 0.89831 0.89514 0.89342 0.89142 0.90551 0.94237 0.94809 0.92946 0.94733 0.93875 0.91596 0.89083 0.87966 0.84674 0.84182 0.85208 0.86084 0.84271 0.83278 0.80189 0.82112 0.81238 0.83406 0.85741 0.86159 0.85671 0.8601 0.86322 0.87742 0.88125 0.87478 0.87199 0.87816 0.89119 0.88964 0.89274 0.88304 119.875 119.645 120.655 122.875 120.295 121.025 113.59 112.385 106.54 109.495 102.665 102.37 103.205 101.615 104.565 114.405 116.635 113.49 113.835 110.99 111.62 111.25 113.305 110.155 110.195 112.71 114.05 112.795 112.65 109.385 107.065 106.225 109.75 109.57 110.755 111.975 6.3645 6.3571 6.3379 6.3986 6.4936 6.579 6.5472 6.4648 6.4845 6.5825 6.6585 6.6391 6.6799 6.67 6.7749 6.8949 6.9495 6.878 6.88 6.8918 6.8974 6.8049 6.7904 6.7189 6.5685 6.6428 6.6156 6.6077 6.512 6.2958 6.343 6.2803 6.3449 6.4168 6.6534 6.795 6.8179 6.8806 6.951 6.8882 6.8657 6.736 6.7078 6.7107 6.7368 6.9096 6.8449 66.245 65.565 65.585 66.55 66.1563 67.845 67.925 66.2225 66.415 67.4225 67.345 66.765 66.995 66.5375 66.7375 68.3712 67.87 67.5375 66.825 65.04 64.33 64.5425 64.8587 64.0712 64.0223 65.32 64.5914 64.48 63.8275 63.8475 65.225 65.2217 66.74 67.0875 68.7387 68.4562 71.0675 72.865 73.5375 70.3725 69.815 71.2875 70.8675 69.275 69.5537 69.2662 68.9537 1.3206 1.3232 1.30865 1.3373 1.3891 1.4007 1.34435 1.30915 1.2537 1.30925 1.28965 1.3099 1.309 1.31335 1.3378 1.333 1.34105 1.3081 1.3352 1.339 1.36575 1.3484 1.2996 1.24865 1.23805 1.24995 1.28915 1.2733 1.25295 1.2282 1.2846 1.29045 1.2901 1.29545 1.3196 1.2981 1.3074 1.2825 1.31085 1.31915 1.3658 1.31 1.3241 1.334 1.3418 1.34765 1.31025 111.03 113.95 112.79 113.605 109.715 109.375 111.9 111.2 111.175 108.38 108.325 142 01/08/2019 0.90428 108.185 6.902 69.0587 1.3208