Forex or foreign exchange
is the most liquid and largest market in the world, so forex price movement must be followed by the players in it. With trillions of dollars of money exchanging hands every day.
In their transactions, traders must understand the various factors that can influence them, both fundamentally and technically. In this article, we will discuss the importance of understanding the influencing factor to provide a different view, especially for newcomers.
Two Factors Behind Forex Price Movement
These two factors must of course be understood as well as possible by traders, especially those who are beginners to have a better basis for trading.
Therefore, let's go straight to the main discussion. Regarding the two fundamental factors and analysis, with the hope of making it easier for you to get started.
1. Fundamental Factors
First, fundamentals are factors that come from the economic and political conditions of a country. This, of course, can affect the value of its currency in the market in general. Some of the underlying factor that influence forex price movements to consider include:
2. Interest Rates
An increase in interest rates will usually increase the value of the country's currency. Conversely, a decrease in interest rates can weaken the value of the currency, so it can directly affect the forex price movement.
3. Economic Conditions
Furthermore, good economic growth tends to increase the value of a currency, while poor economic growth can weaken the value of a country's currency.
4. Government Policies
Finally, fiscal and monetary policies, are when a country takes such policies. Many traders from the best forex brokers try to take advantage of the moment to make more profit.
5. Technical Factors
Second, besides fundamentals, there are also technicals which are deeper factors. Where it is always related to chart analysis and technical indicators. Some technical factors that need to be considered include:
6. Support And Resistance
Of course, the support and resistance levels on the chart can be a reference in determining a trader's buy or sell position, it has become the basis for making foreign exchange transactions.
7. Technical Indicators
Furthermore, there are Indicators such as moving averages, RSI, and MACD that can help in determining price trends as well as the momentum of forex price movement.
8. Chart Patterns
Finally, there are chart patterns such as double tops, head and shoulders, and triangles that can provide signals to open or close positions when trading. It is important to understand these factors because they will determine success in making the most informed trading decisions.
More simply, you traders will be able to follow market developments in real time. So that there will be more potential for profit. However, we still remind you that nothing is certain in the market, all follow market developments and must prepare yourself with the best risk management.
Join the Best Broker Directly
If you are interested in starting trading on foreign exchange, be sure to deepen your knowledge with the basics above. In addition, join Didimax Forex broker to get a lot of help to be able to learn and become an expert in it.
We are a broker that has been operating since 2000 and has received many awards not only on a national scale but also internationally. Offers a lot of online educational training, free demo accounts, and direct analysis of the forex market
, coupled with the support of CS which is always online.
Makes it easy for you to read forex price movement using the MT5 platform which is popular among world trade players. Interested in joining Didimax? Just visit our official website and open an account now with a wide selection of types as well.
We are sure that this information will be a good basis. Immediately start reading the forex price movement then get a big profit from each of your transactions.