How can I predict where exchange rates will go?

How can I predict where exchange rates will go?

As any market, FX market is driven by supply and demand:

  • If buyers exceed sellers, prices go up.
  • If sellers outnumber buyers, prices go down.

There are many different factors which influence supply & demand for every particular currency and, consequently, its exchange rate vs. other currencies. For example, national economic performance matters a lot. If Australian GDP is higher than expected, with all things equal Australian dollar will appreciate versus its counterparts and you can make a profit on buying AUD/USD. You will find all important events in our economic calendar.

Moreover, there are so-called technical tools & indicators. When you see a currency pair chart in your trading terminal, it’s assumed that this chart reflects all information available to the market. As a result, you can use the previous price action to foresee the future. According to this concept, previous highs and lows represent important levels where the currency pair may linger and reverse. If such level is breached, a big move may follow and a big move means good profit opportunities. Moreover, you will be able to identify trends – rising, descending and sideways – and open your positions in direction of a trend getting profit.   

You can learn more about these things when you get started. Our analytics will be very helpful for this purpose. 

Latest news

Dow and S&P head south

On Monday, the Dow Jones Industrial Average and S&P 500 sank in volatile trade because a boost from news in Italy and China receded and losses in energy as well as financial stocks put pressure, although profits in technology equities helped to restrict…

Evergreen buck rallies vs. its rivals

On Monday, the US currency managed to surge versus its key opponents after a dive in the British pound in the face of soaring uncertainty as for the future of British Prime Minister Theresa May because Brexit negotiations were still suspended…

European shares conclude down

On Monday, European equities managed to conclude a bit down due to the fact that market participants were still nervous about budget clashes between Italy and the EU and the UK’s efforts to break up with the trade bloc…

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