The dollar and Euro forex charts are tools that displays the movements of the USD and the EUR in the forex market.The dollar and Euro forex charts expresses the historical pattern of performance of USD/EUR currency pair. They chart identify and record dollar and euro prices at different and specific time frame. They have the ability to display low, high and average prices of these currencies when compared to other currencies.
The dollar and euro forex charts have the capacity to predict future currency movements thereby facilitating trades. The EUR/USD currency pair is said to be an abbreviation for the euro and United States Dollar for the currencies owned by all European Union and the United States Dollar. These currency pair are known to be the most traded currency pairs in the world and rated as one of the major determinants for other currencies in terms of rise and fall in value.
FACTORS THAT INFLUENCE THE DOLLAR EURO FOREX CHART
Both dollar and euro currencies are affected by basic factors that influence the rate of the euro and the United Stated Dollar relative to each other and when compared to other currencies. Based on the exact reason, the interest rate discrepancy between the European Central Bank and the Federal Reverse influence the value of the dollar and the euro when equated to each other. These factors also influences the flow of the dollar euro chart For example, when theFederal Reverse interferes in a forex open market activities in other to make the United States Dollar stronger, the exact value of the dollar and euro currency might decrease due to the strength added to the USD compared to the Euro.
READING THE DOLLAR EURO FOREX CHART
In a stock price chart, the generated price directly signifies the exact price for the stock but in the case of a currency pair like the dollar and euro, the price enumerated on the price chart characterizes the exact exchange rates of the two distinct currencies in the pairs. This only means that the directional indication of the dollar euro forex chart corresponds to the base currency.
For example, in a dollar euro forex chart, when forex traders take long positions in the EUR/USD currency pair at 1.60, as the currency pair rate inclines to 1.80, the euro which is the base currency increases in strength in the chart while the United States Dollar decreases and losses strength. This only means that it requires 1.80 U.S dollar which is more dollar to buy the same amount of euro which gives the euro strength and weakens the United States Dollar.
In conclusion, the dollar euro forex chart generates and carries a lot of forex trading information on the EUR and USD currency pairs which ranges from historical trends to seasonal variations. They transport information on the prices, the fluctuation and trends of these currency pairs. These information when properly harnessed can result in a great range of success.
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.