Forex trading beyond the basics...from Tush312

20 Mar 2022, 13:01 · Views 929

Trading in the currency markets requires more than one technique. Some traders believe in price action (Technicals) because price discounts everything. They rely on price action to make trading decisions. On the other hand some traders believe in fundamentals. Fundamentals explain why price should move

Relying on one method it’s not enough. Combining both produces high probability trades. This trades are few but will make you big chunks of money. The idea is to take trades with fundamentals, sentiment and market tone going for you.

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The rally in the EURUSD will peak in the short term. Currencies have a positive correlation with expected future interest rates. Bonds yields on the short end of the curve are primarily driven by interest rates expectations which means that short-term bond yields embed expected future interest rates. Currency pairs represent two nations so it’s imperative to compare two nations bonds yields. Interest rate differential Interest rates differential which acts as a leading indicator for exchange rate movement signal that the rally on the EURUSD is close to a pause. g Positioning Bullish Speculative bets on leveraged funds are approaching all times high of 2021. As leveraged funds takes profits on those positions Euro will experience a downward pressure. Price actions EURUSD has been on the sideways channel for the better part of the week a significant drop below 1.1195 will be a good signal to enter a short position targeting 1.1.

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