INVESTORS FOREX One of the great advantages of trading currencies is that the forex market is open 24 hours a day (from 5pm EST on Sunday until 4pm EST Friday). Economic data tends to be one of the most important catalysts for short-term movements in any market, but this is particularly true in the currency market, which responds not only to U.S. economic news, but also to news from around the world. With at least eight major currencies available for trading at most currency brokers and more than 17 derivatives of them, there is always some piece of economic data slated for release that traders can use to inform the positions they take. Generally, no less than seven pieces of data are released daily from the eight major currencies or countries that are most closely followed. So for those who choose to trade news, there are plenty of opportunities. Here we look at which economic news releases are released when, which are most relevant to forex (FX) traders, and how traders can act on this market-moving data.
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Which Currencies Should Be Your Focus?
The following are the eight major currencies:
1. U.S. dollar (USD)
2. Euro (EUR)
3. British pound (GBP)
4. Japanese yen (JPY)
5. Swiss franc (CHF)
6. Canadian dollar (CAD)
7. Australian dollar (AUD)
8. New Zealand dollar (NZD)
This is just a sample of some of the more liquid derivatives based on the currencies above:
As you can see from these lists, the currencies that we can easily trade span the entire globe. This means that you can handpick the currencies and economic releases to which you pay particular attention. But, as a general rule, since the U.S. dollar is on the “other side” of 90% of all currency trades, U.S. economic releases tend to have the most pronounced impact on the market.
Trading news is harder than it may sound. Not only is the reported consensus figure important, but so are the whisper number and the revisions. Also, some releases are more important than others; this can be measured in terms of both the significance of the country releasing the data and the importance of the release in relation to the other pieces of data being released at the same time.
Australian Dollar technical analysis Currency pair Australian Dollar to US Dollar AUD/USD continues to move within the limits of the decline. At the moment, the pair is testing the area of 0.7840, we should expect a rebound attempt and growth above the level of 0.7910 as part of the formation of the bearish wave model of Wolfe.
Canadian Dollar technical analysis Currency pair US Dollar to Canadian Dollar USD/CAD continues to move within the framework of the formation of the reversal model «Double Top». At this point, we should expect an attempt to test the broken trend line near the area of 1.2510 and continue falling below the level of 1.2340. USDCAD prediction |
Swiss Franc technical analysis Currency pair Dollar Franc USD/CHF continues to move within the framework of growth. At the moment, we should expect a test of the level of 0.9820 and an attempt to drop quotations in the area below the level of 0.9620. In favor of reducing the Dollar/Franc pair is the resistance line test on
Japanese Yen technical analysis Quotes of the currency pair US Dollar to Japanese Yen USD/JPY are traded within the framework of the bullish model «5-0». At the moment, the pair is testing the resistance area. One should expect an attempt to rebound and fall into the region of the lower boundary of the channel near the area
British Pound technical analysis Currency pair Pound Dollar GBP/USD continues to test the support area near the level of 1.3180. It is expected to rebound and the pair Pound Dollar rise above 1.3310 as part of the completion of the «Head and Shoulders» reversal pattern. In the vicinity of 1.3310, we should again expect a further decline