Often while looking to invest in the currency market, brokers and experienced traders advice newbies to focus on historical data and plan one’s trade accordingly. With 2017 coming to an end, it is time to gear up a new pathway towards profiting from the currency market in 2018. So, one must sit down cross-legged and dig into market data from the last two or three years and what can be better than starting off with the best forex strategy 2015.
Events that mattered
The year 2015 saw the currency market face some volatile encounters. While some redefined price action, others caused significant trend reversals. Here are a few events from 2015 worthy to ponder on:
- Building ground for Brexit:
While Brexit took place in 2016, the build-up to this event was in the air from 2015. Market volatilities raged exponentially during this time frame which saw an increasing urge among carrying traders to go for day trading. With progression, day trading gave way to scalping and investors resorted to leveraging their position extensively.
For instance, GBP/EUR running at 1.3007 fell to 1.1005. People started going short on GBP which led to an even rapid fall of the currency.
- Europe’s Refugee Crisis:
The civil war in Syria took a turn for the worse when millions of people started to take refuge in Europe. From the Forex market point of view, it led to Europe’s currency value take a nose dive. Investors started going long on USD and JPY against EUR through carrying trading techniques considering it as the best forex trading strategy 2015.
This historical data stated that, in time of a national population outburst, one should instantly opt for long-term carry trades against the currency of that specific country. Over time, profit is sure to come.
- Swiss Franc dominates Euro:
CHF in 2015 made EUR hit a floor value of 1.10 (it’s all-time low). Lack of liquidity between these currency pairs led to such a mayhem; brokers went bankrupt, and investors went into debt. However, the FX market saw a trend reversal when a lot of global traders invested in Euro as a profitable bet.
These investments are now incurring significant profits as EUR/CHF now clocks at 1.16 and promises to surpass the 1.18 mark by mid-2018. Thus, counter momentum trading emerged to be the best forex system 2015.
- Fall in Canadian Rates:
In another significant event, Canadian dollars saw a significant price drop due to the recession. Crash rates were high at 0.75% and varied up to 0.50% during the period. The best forex strategy 2015 for this situation emerged to be hedging.
A historical, fundamental, as well as technical analysis, revealed that CAD/USD experienced a 75% fall during this period. So investors took to hedge their investments and create stop losses to minimize transactional mishaps.
Pondering on the above facts; one can draw valuable information regarding the importance of 2015’s historical data and how it impacted the currency market. This data also helps in judging the best forex strategy 2015 and its impact on 2018’s FX arena. So, hold your investments tight and exploit historical facts to carve out the perfect strategy for you.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.