Forex trading is a strategy based on the assumption that a currency will appreciate in value over time. So, when you see an opportunity to buy or sell the local currency at a higher price in the future, you take that as a chance to make money. You do this by buying low and selling high so that your investment ends up yielding profits in the long run.
However, forex trading involves risks like any other investment. If you’re not careful, you can lose money very quickly. And it’s not just your capital that’s at stake here either. If you don’t know how to trade or if you happen to fall victim to unethical traders and brokers, they can end up stealing information from your account so they can cash out at your expense too.
In this article, we will discuss some of the factors that affect the price of currencies and how these factors can help you improve your ability to forecast movements in exchange rates so that you can make money from them as well. Here is the analysis of eurusd currency pair for today-
- News events could adversley affect the short term technical picture.
- The previous swing high is located at 1.0200.
- Price action continues to gravitate towards crucial resistance levels with aggressive buying interest.
- Resistance could prove difficult to breakdown.
- We therefore, prefer to fade into the rally with a tight stop in anticipation of a move back lower.