During our period of reading through most of the forex articles by broker dealers and other trader's analysis; we have observed lately that most write-ups, forex article related to market behavior tend to speculate on reversal patterns in the making. Anticipating a reversal in any currency pair may or may not be more than calling and claiming that they have called a market forecast accurately. At times, its not about calling a price correctly based on forecast, but simply taking market behavior on step at a time. As a market trend reversal can only be called if and whenever a new price is established on the higher or lower side of the market.
As we gather market sentiments and studying current market conditions; as perplexing as it may seem, most of these analysts have been calling a near term probable market reversals for the Euro and other currency pairs. With all due respect; whenever such calls does not appear to accommodate their analysis, tendencies are they do change and never go back to their written articles.
As a matter of caution, most market analysis provided by some are merely short term. For those who provides both sides of the market are in a better position in providing the pros and cons of the market. However, the psychology behind most analysis is to provide a short term outlook leaving enough room for traders to trade. Be extra keen on the time table of charts being shown as the time frame needs to be identified and would have to coincide with the analysis. An example would be a 15 minute chart, including some technical tools and a 200 day moving average. Of course, some analyst would simply show the relationship with it, but does not necessarily relate to a short term trading analysis. Thus providing a not so clear picture of what is being presented. However, with all due respect, everyone is entitled to their own opinions and analysis. So it all depends if you would buy or sell your trade at the end of the day's trading.
In essence, knowing a trader or investors perception is equally important to be entirely independent of what one reads and see in the market place, including this writing. A certain level of comfort & ability in trading decisions can only be attained from due diligence and careful studies before trading. A short video which we have presented before; the 8 forex trading analysis describes at least 8 to 9 trading tools that is needed to come up with at least an informed decision and a clear observation of the related currency pairs that does influence the market conditions. Link to video: http://www.youtube.com/watch?v=n9gE1iN-wUU
As we come back to reality, the Consumer Price Index and the University of Michigan reports would be more influential as to the direction of the USD. As it has lost its luster from market investors as they are try to maintain their oil and precious metals positions in the futures market. No sign of market sentiments shifting otherwise in spite of some corrective moves on the Gold and the oil prices. The closing market prices across the board on the currency pairs are vital to provide some much needed direction and an overview of the next probable currency pair to move by next week.
No comments:
Post a Comment