Forex market forecast is by no means an easy task. When done manually, it can be very complicated; might take traders months to learn about its skills. However, the concept of evaluating previous price movements has changed and advanced software is available for doing the task effectively.
Prospect on forex market forecast:
Forex market forecast is a research work which helps you to know beforehand the probabilities which might take place in the market. It gives you an idea about the future high and low prognosis along with their time span.
Often traders believe that some chart patterns are repeated and that aids in price movements. Such patterns are made from the support and resistant levels - which simply speaking- shows the point when traders can engage or exclude themselves from a trade.
Experts state - "…price tends to move constantly when resistant or support is broken and traders have to keep a close watch on the next support or resistant levels to decide about their investment venture."
How accurate are these technical readings?
One may argue about the dependency of these forex market forecasts. The market concerned is quite volatile and getting 100% accuracy is a distinct improbability. But because these predictions are obtained through statistical charts and hardcore technical market data, they do prove to be reliable, even with a minimal margin of error.
However, to ensure that you get accurate and reliable forex market forecasts every single time, you have to go for good quality fx forecasting tools and services.
The available options:
Options such as MA-moving average charts, trend line charts, Fibonacci lines, MACD, pivot level charts, stochastic, RSI and much more are available for trader’s conveniences. The main idea is to use them collectively and draw a picture of when to engage in a trade.
But just having these options available is not going to get to anywhere. There are traders who despite using these tools fail to gather profits. You as a trader have to be extremely dedicated to it and if needed, spend hours and hours practicing with a demo account to perfect your skills.
Perseverance and persistent practise is a must, or else your profits will remain an unattainable desire.
Important aspects to look at for forecasting market
- Interest rates - rate of interests play a crucial role in influencing the price of currencies. Experts label it as the driving force of FX market.
- Consumer price index - а high index or high price denotes a strong economy.
- PPI or producer’s price index - It is the price of materials for the manufacturers. When it increases, the price increase will pass on to the consumers, thereby increasing the CPI or consumer price index as well as the interest rate.
- GDP - experts call it as the account sheet of the whole nation. An economist considers it as the strong indicator of the economic performance of a nation as results seem to be reported on quarterly basis. A rise in GDP means rise in the rate of interests.
- Payroll enrolment - it denotes the employment situation or measure of a country and if this is high, it indicates a strong economy.
Young traders who conduct forex market forecast will have to keep an eye on these important aspects. Being aware of all these factors will definitely help you in your fx trade and market. So start practising with a demo account now.
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.