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Forextradingzones

Why are fundamentals ESSENTIAL in forex trading?What is the thing that manipulates the market to make sure your stop loss is touched in less than a minute? Simple, Fundamentals. Forex trading constitutes the most accessible form of trading for individuals. Low barrier entries, low commissions, forex possess everything that a young trader wants. However, content that most young traders learn from on YouTube puts emphasis on technical analysis and neglects fundamental trading. Big institutions like central banks or hedge funds, who are the ones moving the price, always make entries depending on the economics of a state. For example, EURUSD has recently reached the historical level of under 1.00000, a level that hasn’t been reached for over 20 years, after the European Union stopped dealing gas and oil with Russia. (see the image in the chart) Furthermore, oil prices are closely related to Canadian currency, where increasing the price will increase the value of the currency. As the price of oil is increasing, AUDCAD is reaching historical levels of under 0.86000. Therefore, we can clearly see that fundamentals influence the market’s direction. We can apply fundamentals to reduce our risk as well. Indeed, we can identify risky opportunities and filter out bad trades or reduce the position size. However, over the short term technical analysis can be a practical tool to determine price reversals or the timing of an entry. History tends to repeat itself, it is the same about markets. As a matter of fact, we can use historical market price data to forecast market movements. In a perfect world, each trade would be the result of a mix of the two, with fundamental analysis assisting technical analysis. In conclusion, digital content to learn trading leans toward technical analysis even though fundamentals contribute to an important part of profitable trades by forecasting future market prices.
Education
by vf_investment
3
EURUSD PENNANT BREAKPair: EURUSD Timeframe: 4H, 1H Analysis: Round number level, trend line, volume profile, support and resistance, pennant pattern breakout, triple touch, high bullish steam ————— Key Takeaway: Have broken the top side of this pennant pattern today and area heading up toward dynamic resistance. We are likely to break and push through this level although the possibility of a bounce is also possible ————— Level needed: need a close by 0.98230 ————— Trade: Long RISK:REWARD 1:8 ————— DO NOT ENTER OUR SETUPS WITHOUT CONFIRMATION
Long
by TheGoldRoom
USDCAD BREAK OR BOUNCE? Pair: USDCAD Timeframe: 4H, 1H Analysis: Round number level, trend line, volume profile, support and resistance, descending triangle ————— Key Takeaway: Mainly bullish for USD but due to strong resistance, this trade could go either way. We are either looking for breaks of resistance trend line or bounce, keep bias open and opinion open for any possibility ————— Level needed: need a close by — ————— Trade: NEUTRAL RISK:REWARD — ————— DO NOT ENTER OUR SETUPS WITHOUT CONFIRMATION
by TheGoldRoom
EURUSD HEAD AND SHOULDERS SETUPPair: EURUSD Timeframe: 4H, 1H Analysis: Round number level, trend line, volume profile, support and resistance, head and shoulders pattern ————— Key Takeaway: Overall very bearish for the EUR and this seems like an amazing point to short as we have seen a break of support and a re-test using it as resistance, we will see how we start when the market opens ————— Level needed: need a close by 0.97370 ————— Trade: Short RISK:REWARD 1:8 ————— DO NOT ENTER OUR SETUPS WITHOUT CONFIRMATION
Short
by TheGoldRoom
AUDUSD CONSOLIDATION BREAKOUTPair: AUDUSD Timeframe: 4H Analysis: Round number level, trend line, volume profile, support and resistance, consolidation break ————— Key Takeaway: Been ranging for some time now and we finally saw some breaks to the downside toward the end of last week, we are looking for re-tests of this broken level of support before shorting as USD has gained some strength pushing this pair down ————— Level needed: need a close by — ————— Trade: Short RISK:REWARD — ————— DO NOT ENTER OUR SETUPS WITHOUT CONFIRMATION
Short
by TheGoldRoom
GBPUSD BREAK OR BOUNCE ?Pair: GBPUSD Timeframe: 4H, 1H Analysis: Round number level, trend line, volume profile, support and resistance, pennant pattern ————— Key Takeaway: Just approached a very significant level of resistance where we have seen alot of consolidation. We could either see a bounce or break, we have to be ready for either move ————— Level needed: need a close by — ————— Trade: Neutral RISK:REWARD — ————— DO NOT ENTER OUR SETUPS WITHOUT CONFIRMATION
by TheGoldRoom
USDJPY ASCENDING TRIANGLE BREAKOUT?Pair: USDJPY Timeframe: 4H Analysis: Round number level, trend line, volume profile, support and resistance, ascending triangle pattern, breakouts ————— Key Takeaway: We have seen price consolidating in a ascending triangle manor for the past week and we might finally see a breakout this week. We have been using resistance and high volume profile together and the level is seeming difficult to break, due to upsides of USD we are looking to break these levels and entering long ————— Level needed: need a close by 144.965 ————— Trade: LONG RISK:REWARD 1:3 ————— DO NOT ENTER OUR SETUPS WITHOUT CONFIRMATION
Long
by TheGoldRoom