For online trading, a trader needs to understand the complex analysis of the market and forecast forex from leading forex experts. And no matter what level of experience you have in forex trading: you are an experienced trader or beginner, you will definitely use the forex forecast.
For all traders the forecast is a kind of conclusion of the analysis of market circumstances and a guide for activity. It does not mean that you have to blindly follow the recommendations offered by the financial expert. But, you can compare expert forecasts with your thoughts, and, based on this comparison, make decisions about investing or refusing a deal.
Forex market behavior forecasting is essentially a technical analysis and fundamental analysis that are very different from each other, but both can be useful for a forex trader. Also in the forecast you will see several trading strategies, which are selected and edited so as to get the maximum profit of 80% of the time or compensate for the loss of the first trades 20% of the time in reverse trading. All these strategies have one goal – to predict the price of your chosen asset or its change.
Forex forecast for today: example on EUR/USD
As you know, the strongest and most applicable elements of technical analysis are support and resistance lines. They are usually used in all strategies to enter and exit the market. The support and resistance lines presented in today’s forecasts are unique, analyzed and calculated based on direction, market power and trading opportunities over the next 24 hours. They differ from the usual lines, which are calculated using simple formulas (pivots). Thus, the support and resistance lines of the forecasts are much more profitable than the usual technical lines.
For example, the Forex Euro forecast appears to have all the important technical lines such as support and resistance lines, trends, Fibonacci levels, disagreements and convergence, as well as RSI indicators.
Thus, the rate of EUR/USD last week was influenced by the following events:
- Home sales in the U.S. in the secondary market;
- The Fed’s decision on the interest rate;
- Set rate from ZEW on economic sentiment index
- Statement by the Federal Open Market Operations Committee.
As a result, we saw the pair continue to fall below 1.0805. It was assumed that the growth of the dollar will rise above 1.1575. If to take into account this forex forecast of euro dollar, it would be possible to assume increase of the price with the potential target to a mark of 1.1875. And of course, the traders would start to actively buy the euro.
Based on the last mark, experts form a forex forecast for the week on this currency pair. Then we believe that the increase in the value of the euro will not be so active next week. This increase is only a part of the second corrective wave, but after it there will definitely be a decline.
Should I trade EUR/USD now? Because of such, not quite adequate price jumps, we do not recommend it. And if you have already opened deals to buy, we would recommend to close them or move them to a lossless position.
As you can see, everything is not as difficult as it seems at first. Usually the forecasts are provided by one Expert Advisor every day, so you can study and compare them with others, and then decide to open an order.