Being a forex newbie, if you are going to do XAU USD daily technical analysis, you have taken up a challenging task, I must say. But do you have a clear understanding of technical analysis? If not, then it is the most vital part that you should learn. Through this approach of analysis, you have to frame trading strategies based the price movement of the currency against time given in a chart.
Price Chart: The price chart has one vertical axis determining price and one horizontal axis determining time. Through this chart, you can track the changing trends and patterns for understanding the market direction and movement. You can view these charts on a daily basis or even at intervals like 4 hours, 1 hour or 15 minutes.
XAU USD daily technical analysis: Daily chart
In the context the forex market, you can make effective interpretations only when you have a proper understanding of the daily chart. It is a visual representation of pip movement, and price action takes place on 24 hours basis.
This chart contains a summary of events of the whole day, open, close, high, low prices of the currency pair XAU/USD. The daily technical analysis is a wonderful tool to have an idea of the underlying trend. Being a forex day trader, you can use these indications to analyse what’s coming in the next days, weeks and months.
Gold as a leading indicator of price movement:
You might be thinking why I suddenly mentioned gold. Well, gold is intimately connected to the forex market and keeping a track on this yellow metal will help you in speculating changes in price. You can do a forex XAU USD gold technical analysis in this context.
Do you remember the incident of California God Rush back in the 19th century? People literally rushed to California searching for gold. Moreover, even today, when there is a crisis in financial or political sector, people prefer to invest more in gold as seeking a safe refuge.
Gold has a direct impact on movements in price charts. Also, the metal, traded everywhere across the globe (starting from small vegetable vendors to large multinational companies), gives a proxy for value as well. So, this can certainly give you invaluable cue.
A correct forex XAU USD gold technical analysis will take you closer to profitable returns from this busiest global financial market.
Wondering what’s the reason for all these?
Look! If forex market can give you huge profits, it can give you an equal amount of loss as well. To avoid any such financial disaster, you must put your entry and exit positions in the trade strategically. Here, prediction and analysis help in determining the right position that can bring you maximum profitable returns.
Tips to learn XAU USD daily technical analysis skills:
Forex beginners have an excellent opportunity to learn the skills of technical analysis and forex trading. Here’s what you can do:
- Get associated with a reputed online forex trading platform
- Use demo accounts available free for debutants in those online platforms
- Join online forum of traders
“Practice makes a man perfect.” Here, practice without risking your money, learn the concept of trading, understand the market and then proceed for XAU USD daily technical analysis to frame your investment strategy.