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Forex Market and Technical Analysis: A Great Tool for Trading in the Forex Market
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Forex or Foreign Exchange market is considered as the most liquid and largest market in the world. This kind of trade is done with the use of money. A Forex trader exchanges foreign currency for another currency in order to make a profit.
Forex is a global market where trading never stops. It operates twenty four hours a day and five days a week and a lot of people trade in this kind of market because of the great money making potential.
It is known that people who traded in the Forex market were able to earn more than a million dollars a year. With this kind of potential earnings, who wouldn’t want to be a Forex trader.
If you have the skills in trading, knowledge about how Forex works, and have enough capital, trading in Forex can be the right choice for you.
As a trader, you may wonder what it would be like to have the skill to predict the Forex market future. This kind of skill would be like a dream come true for Forex traders and would really make them rich.
However, humans are humans and you know that you or anyone else doesn’t have the power to predict the future. But, there is a particular tool that you can use to somehow get a glimpse of the future of Forex markets. This kind of tool is called technical analysis.
Basically, there are two types of analysis that are used to predict the Forex market. One is called fundamental analysis and the other is called technical analysis. Unlike, fundamental analysis which focuses on economical and political factors to predict the Forex market’s future, technical analysis tends to concentrate more on the past information that happened in the Forex market to predict the future.
But, you may ask how can you predict the future by examining the past? The basic answer to this question is that technical analysis can predict the Forex market’s future by looking at the different trends that happened in the past. And, technical analysis always assumes that this trend will happen again.
This means that technical analysis isn’t concerned at all on why the market moves, it is concerned on the actual movement of the market. Analysts try to study the movement and try to make a speculation by basing it on past Forex market movements.
However, many people still considers technical analysis more of an art than science because there is no actual proof that technical analysis really works. But, traders are now also considering technical analysis as an important factor in the Forex market. They tend to refer to the analysis and support it by comparing it with the fundamental analysis.
If both types of analysis complimented each other, they can now arrive to a decision in what to do about the particular situation in the Forex market.
With technical analysis, you can be sure that you will have something to guide you in the Forex market.
Always remember that technical analysis isn’t always 100% accurate. It is merely speculations and you should investigate further before you arrive to a final decision.
If you do it right, you might and will really have a glimpse of the Forex market’s future.
Free Forex Technical Analysis News
Forex - EUR/JPY Technical Analysis (Euro / Yen)
The pair continues to move on the lower band of its bearish slant (purple line). The pair is still testing the support at 102. All indicators are bearish. We continue to advise short positions as far as 103.67 is resistance. The breakout of 102 will give a new sell signal and open the way towards 101. In case of return above 103.67, we will wait the breakout of 104.45 to advise long positions.
Read more...Forex - USD/CHF Technical Analysis (US Dollar / Swiss Franc)
The pair USD/CHF is testing since yesterday the resistance at 0.9450. The opening gap is still not filled in. All indicators are bullish. The pair is still moving above its bullish slant (black line). We continue to advise long positons as far as 0.9350 is support. The breakout of 0.9450 will give a new buy signal and open the way towards 0.95. In case of return below 0.
Read more...Forex - AUD/USD Technical Analysis (Australian Dollar / US Dollar)
The pair AUD/USD has rebounded yesterday on the support at 0.99 and also on the lower band of its bearish channel (purple lines). The pair got back into its falling wedge. Indicators are globaly bearish. We continue to advise short positions as far as 1.0050 is resistance. The breakout of 0.99 will give a new sell signal and open the way towards 0.98. In case of return above 1.
Read more...Forex - NZD/ USD Technical Analysis (New Zealand Dollar / US Dollar)
The pair NZD/USD continues to test the support at 0.7668. This level match with the lower band of its bearish channel (purple lines). The opening gap is still not filled in. All indiactors are bullish. We continue to advise short positions as far as 0.78 is resistance. The breakout of 0.7668 will give a new sell signal and open the way towards 0.76. In case of return above 0.
Read more...Forex - GBP/USD Technical Analysis (British Pound / US Dollar)
The pair GBP/USD has continued its bearish movement and the breakout of 1.5950 gave us a new sell signal. Currently, the pair is testing the next support at 1.59. We continue to advise short positions as far as 1.6050 is resistance. The breakout of 1.59 will give a new sell signal and open the week towards 1.5823. In case of return above 1.6050, we will be neutral between this level and 1.61.
Read more...Forex - USD/JPY Technical Analysis (US Dollar / Yen)
The pair USD/JPY has tested yesterday the resistance at 80.41. All indicators are bullish. The pair is still moving above the upper band of its former bearish channel. We are neutral on the pair between 80.09 and 80.41. We advise to wait an exit of this range to take position: - Long above 80.41. The breakout of 80.76 will give a new buy signal - Short below 80.09. The breakout of 79.
Read more...Forex - EUR/USD Technical Analysis (Euro / US Dollar)
The pair EUR/USD is testing since yesterday the support at 1.27. This level match with the lower band of its bearish channel (black lines). The opening bearish gap is still not filled in. All indicators are bearish. We continue to advise short positons as far as 1.2850 is resistance. The breakout of 1.27/1.2650/1.26 will all give a new sell signal. In case of return above 1.
Read more...Forex - GBP/JPY Technical Analysis (British Pound / Yen)
The pair GBP/JPY finaly took up its bearish movement yesterday and is currently testing the support at 127.70. The pair is moving along the upper band of its former falling wedge (purple lines). All indicators are bearish. We continue to advise short positions as far as 128.86 is resistance. The breakout of 127.70 will give a new sell signal and open the way towards 126.70.
Read more...