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The Impact of USD and EUR on the Global Forex Market

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  The foreign exchange (Forex) market is the largest financial market in the world, with a daily average turnover of over $7.5 trillion, according to the Bank for International Settlements (BIS, 2022). This tremendous volume exceeds the combined activity in the global stock and bond markets and underscores how critical currency trading is to the modern financial system. Two currencies stand at the center of this gigantic universe: the U.S. dollar (USD) and euro (EUR). Together, they dominate trading activitythey appear in over 80% of all Forex transactions across the globe. For both professional traders and casual consumers, their impact is inescapable. A strong or weak dollar can shift oil prices, change the cost of traveling abroad, or change tuition fees for international students. Fluctuations in value of the euro influence the Eurozone and beyond, impacting global trade, corporate profit, and household spending. The Global Dominance of USD The U.S. dollar (USD) is not jus...
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Key Technical Indicators in Forex: RSI, MACD, and Bollinger Bands

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  The forex market is very volatile; therefore, traders use technical analysis to find patterns and trends in the market. Forex technical indicators like RSI, MACD, and Bollinger Bands are very important for making trading decisions. There are three basic sorts of these indicators: trend-following indicators, momentum indicators, and volatility indicators.  In this article, we will discuss the basics of RSI, MACD, and Bollinger Bands and show how they may help both beginner and expert traders. These indicators don't tell you what's going to happen, but they are quite useful forex trading tools since they assist traders in making smart choices, controlling their risks, and carrying out their strategies better. RSI Forex: The Power of a Momentum Indicator The Relative Strength Index (RSI) is one of the most popular momentum indicators in trading, created to measure the speed and change of price movement. Created by J.Welles Wilder, the RSI forex tool helps traders detect po...
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CFD in Volatile Markets: Opportunities and Risks

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  In today's ever-changing financial landscape,  CFDs in volatile markets  present both significant opportunities and substantial risks for traders. Whether you're an experienced trader or just starting your journey, understanding how to navigate market turbulence can be the difference between success and failure. Understanding Volatility and CFD Trading Market volatility refers to the rate at which the price of an asset increases or decreases. Highly volatile markets are characterised by rapid and significant price movements, which can occur due to economic announcements, geopolitical events, or unexpected corporate news. Trading CFDs in volatile markets offers unique advantages due to their inherent characteristics. Contracts for Difference (CFDs) allow traders to speculate on price movements without owning the underlying asset, providing flexibility that's particularly valuable during turbulent market conditions. Key Opportunities in Volatile Markets One of t...
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The Ultimate Guide to Forex Candlestick Patterns for Smart Trading

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  If you've opened a  forex chart before you most likely seen those rectangular shapes with thin lines protruding from the top and bottom. Those aren't just random squiggles, they are candlestick patterns and they will soon become your best friend in trading.  Candlestick charts do not simply show you prices moving up and down, they tell the story behind every price movement by indicating what buyers and sellers were thinking each time. Basically, candlestick charts are the pulse of the market. Each candle tells you if the traders are confident, scared, indecisive or ready to rock and roll.  Here is what makes candlestick analysis effective: it combines hard price data with the human element of market psychology. When you have a hammer pattern after a downtrend, you are visually seeing not just a price reversal, but you are seeing sellers giving up control and the buyers are coming back into the market. When you have three white soldiers climbing...
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The Journey of a CFD Trader: From Beginner to Pro

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  In the past ten years, the financial trading world has experienced enormous changes, with one of the most exciting innovations being the emergence of contract for difference (CFD) trading as a way for regular people to trade in global markets. Accessible, highly flexible, and now offered by nearly every online brokerage, CFDs are a great vehicle for trading for many people. Yet, despite their apparent advantages, these derivatives have their own risks attached to them and can be dangerous for those who do not fully understand how they work. This all-inclusive reference will take you step by step through the stages of the CFD trading journey, from grasping the fundamentals to constructing and executing strategies at a professional level. By the time you finish this article, you will have a clear evolution plan for yourself as a trader, from your very first steps to your ascent in the thrilling world of CFD trading. Introduction to CFD Trading: What is a CFD A Contract for Dif...
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Sentiment Analysis in Forex: Using Market Sentiment as a Leading Indicator

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  The forex market is the most liquid market in the world, and even seasoned traders can get trapped in its complexity and constant volatility. Although traditional technical analysis is good, it can sometimes be steps behind real-time market psychology. This is where forex market sentiment is vital, as it acts as a powerful leading indicator in the forex market.   This helps the trader see the collective mood and positioning of market participants before price movements fully play out. By becoming familiar with market sentiment indicators, traders can identify where the crowd is overly bullish or bearish, which may hint at potential reversals or trend continuations.  What is the Market Sentiment Definition? It takes more than an understanding of charts and data to succeed in the Forex market. You need to know about market sentiments, the collective mood, and forex investor psychology that drives traders to buy or sell. Market sentiment is defined as the overall att...
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Understanding Ask Price: A Beginner Guide to Sell Prices in Forex

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  The forex market does not sleep. With over 7 trillion dollars traded daily across the globe in the forex market, you can trade 24-hours per day, by either placing trades or monitoring activity. Traders around the world connect every second from Tokyo to New York.    The forex supply/demand market is a platform to offer currency for sale or for purchase at any given time. However, what a lot of traders do not do is understand how pricing of currency works, every day it can mean success or failure as a trader.   An exchange rate consists of two prices: the bid price and the ask price. The bid price is what buyers are willing to pay for currency. The ask price is what sellers want for the currency. You can think about  when you buy something at a flea market. If you are willing to pay $20 for the item (your bid), the seller wants $25 (the ask price). This difference between your bid and their ask price is what affects every independent trade trans...
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