It is impossible to predict what the future holds with regards to currency trading. It is a form of betting where one must make use of Forex trends from the past, weigh out probabilities and examine the overarching social, political economical environment that the Forex market resides in. For Forex geniuses like George Soros or Jimmy Rogers, this information paints Forex trends as clear as day. Nevertheless, they are still using archives of information and their understanding of outside influences to make informed decisions as opposed to intuitive guesses. Fortunately, beginners or enthusiasts can rely on the expert analysis of professionals and Forex trading companies on the web, who share insight in exchange for loyalty. Below is the general web consensus of the Forex trends of 2011, both the mistakes and opportunities that were made as well as what there is to gain in 2012.
There were a few major events that sent the Forex trend lines in varying directions. The first came from the United States who lost their AAA credit rating for sovereign bonds. Next there was the move towards ‘Oliver Twist’, that is the Federal Reserve Banks decision to trade some of its shorter dated bonds for longer bonds, with consequently affected the interest rate. The third and most publicized event was the yo-yo economic changes within the Eurozone. Going from red to green and then red again, a pattern which is expected to continue in 2012. This will heavily affect Forex indicator trends as fear of further contamination will dictate the attitude of the market. The US Dollar is expected to be a safe refuge for the Euro and experts in Forex trend forecasts expect a similar role from the British Pound.
Forex Trends and Trading Opportunities
Forex trend strategies and tips that have been suggested by expert Forex trend forecasters include going long with the USD/JPY; they have also warned to be careful with the timing. However, a profitable trend Forex system is to start off small, going larger only when you have confirmation that the strategy is working. Keep a look out for reversal opportunities for the USD/CAD, AUD/USD, NZD/USD and USD/CHF. Look back on Forex market trends in 2011 to ensure when past conditions for reversals are repeated in 2012. The biggest pointer to remember when examining forex trading trends is to remove the bias that is inherent in the human mind. Although it is not possible to completely do this, be consciously aware of ingrained biases. Put analyses, past Forex trends and overarching global conditions first and watch signals from the market as closely and objectively as possible.
Penny Munroe is an avid writer in currency trends and forecasts and aims to educate readers on how to be responsible traders. She started trading under a metatrader 4 broker but after downloading a mt4 demo she now manages her own Forex account.
- Four Reasons to Try Forex Trading (forextradingsystemcentral.com)
Forex Trends of 2011: Opportunities for the Future