Learn Forex Trading Strategies 

The Australian dollar managed to remain around $0.90 against the USD yesterday.

Although the RBA raised interest rates by 0.25% to 4.00%, the move was largely expected by the market and thus this did not have a material impact on the currency pair.

The Australian dollar is positively correlated to domestic interest rates, because higher rates enhance the appeal of the local currency to foreign investors. This has the effect of bidding up the value of the local currency.

The Australian dollar was stronger the previous night, on expectations the Reserve Bank would raise interest rates.

However, the actual news of the rate rise, announced at 2.30pm, saw the Australian dollar head lower after an initial jump higher.

The RBA said rates remain “lower than average”.

After the decision, most analysts agree that further rate rises are on the way, although there is no reason to believe the RBA will continue the monthly rate hikes we saw toward the end of last year.

The Australian dollar was rising in anticipation of the announcement but sold off on the release from the RBA. This is a good example of ‘buy the rumor, sell the fact’.

In any case the moving averages are still bullish and this should see the AUDUSD continue to be well supported over the coming sessions.

Traders can use many different methods of analysis for the forex market, particularly technical analysis.

Forex technical analysis is much the same as any other form of technical analysis in that traders will use moving averages, trend lines and oscillators.

One of the most used technical indicators in forex analysis is the moving average, many traders believe the moving average will work better as the market doesn’t really have a closing time from day to day. Using a moving average to identify the strength in a trend is a key factor in picking the actual direction you chosen currency will go. Others may even use economic news for forex analysis such as trading the sharp moves seen around the time of the news release.

All in all, traders should pick a forex analysis method that they not only like but also understand.

When starting out with forex trading the key factor is knowledge. You can find much information on the net although half decent in content, most is free and not of much use. Even those that have traded shares or other global markets still need to understand the finer details of forex, particularly taking advantage of a forex trading course.

You wouldn’t try and fix your own house wiring without the skills and knowledge an electrician has, so why would you enter the fast paced world of forex without having the skills taught in a forex trading course.

Topics such as what technical indicators to use, what times to trade the forex market and the best approach to putting all these things together can be found in Australian Stock Report’s Live Data Trading Workshops (LDTW).

Even money management can be different when entering the forex market, plus rather than reading some article about how to trade, in a forex trading course you can see real traders placing real trades, giving you a better understanding.

The sooner you learn something the sooner you master it, crawling around the World Wide Web for forex training material can take years after you get through all the rubbish. Taking part in a forex trading course could cut that time to almost no time at all.

If you want to learn forex trading, it is important to remember that most of the major currency pairs are related to the US dollar, so most of the action “liquidity” comes from the US session.

There are very many strategies that you can learn to trade forex, taking advantage of movements that may only last minutes to hours. Today we will show you one way in which you can learn how to trade forex.

One strategy you can learn to trade forex is to trade a breakout of the first 30 minutes. So, if you were trading from 8am New York time, the most active time, you would mark the high and low of the first 30 minutes of trade. Traders will then look to get long on a break high or short on a break lower, taking advantage of the liquidity and market action. If you can imagine the scale of all international trade, you can easily understand why the FX market is so liquid, particularly when the US and European markets are trading.

The above forex strategy is only one of many, it’s always best to play around and find one that fits your personality. There are many different strategies you can learn to trade forex.

The Australian share market comprises approximately 2% of the value of global equities. Equity market transactions account for roughly one-third of daily capital flows in financial securities around the globe. The rest is made up of predominantly foreign exchange, bonds and other credit instruments, and commodities.

So, if you are only looking at Australian shares, you are only looking at a tiny snippet of what opportunities the world offers the astute trader to take advantage of.

We believe one of the best markets to trade is the foreign exchange market – or as it is more commonly called “FX”. FX is the ultimate of trading markets. It is the deepest, most liquid market on the planet, and is open practically 24 hours a day, 7 days a week. This market is typically good for those that have day jobs as they can use forex strategies to make decisions and execute trades after other markets have closed.

When we say “deep and liquid” we mean that at any one time, there are literally trillions of dollars of buyers and sellers of the “major” currency “pairs” looking to transact with each other.

When Swiss Air purchases a Boeing 747 Jumbo, they will need to pay Boeing USD for it. This will mean taking CHF out of their bank account in Switzerland, and converting it to USD to send to Boeing in America.

One major forex strategy is to keep an eye on global interest rates, should a rate rise, the currency should also move with it.

If you can imagine the scale of all international trade, you can easily understand why the FX market is so liquid and no matter what forex strategy you choose, be it technical or fundamental, trading opportunities are almost always available in the forex market.