Gbpusd daily forecast and today support and resistance level
This pair is in uptrend in hourly charts as well as in daily charts
The price starts again its uptrend from 1.3550 levels to 1.3730 levels
If it is continue it's a uptrend the price can go to 1.3790 levels
EUR USD DAILY FORECAST AND TODAY SUPPORT RESISTANCE ROUND BOTTOM THEORY BASED
EUR USD currency pair currently traded at 1.2150 levels
And you mention our next support and resistance levels when the price was at 1.2100 levels
Now it has made a short time very strong support at 1.2050 levels
And currently traded at 1.2150 levels
From past few days on hourly charts it is making a round bottom chart pattern and it is a very strong bullish classical pattern and it is about to break it current resistance levels
Once it break this level the price could go to 1.2200 levels.
EURUSD Daily Forecast Support And Resistance Levels
EUR USD DAILY FORECAST 1/20/2021
Today Euro USD Forex pair trading at 1.2100 level
And we mentioned in our previous video the major support and resistance levels of EUR USD and we achieved power support and resistance levels
Currently it is trading at 1.2100 and the next support and resistance levels and daily forecast are
The next major support 1.2050 levels if this pair break that level the euro USD price could come to 1.2000 levels
If this pair moves to upside from this level the price can come 1.2150 levels again and and if it is able to break 1.2150 levels then it can go to 1.2200 levels
EUR USD DAILY FORECAST
Welcome to traders profile we are here to discuss about today
EUR USD Forex pair , the next support at 1.2051 and 1.2000 if we want to buy this pair then we should buy EUR USD above 1.2100 levels
When a person choose to initiate doing trade in foreign exchange market, usually there must be some questions around spreads and how some accounts have spreads and how some accounts have lo spreads.
In this article, we will try to cover what spread is?, to get a better understanding of this concept of Forex.
We can define spread as the friends between the bid(sell) and ask(buy) price of a currency pair. Spread can be measured in pips( point in percentage) which is the smallest unit of price movement of a currency pair.
The purchase price will always be higher than the ceiling price, which means that in, financial market time and price matter the most.
KEY TAKEAWAYS:
1) Spreads are based on the buy and sell price of a currency pair.
2) costs of the currencies are based on spreads and sizes of lot.
3) spreads in forex keep fluctuating and should be referenced from your trading platform.
Now let us understand the type of spreads in Forex along with an example for better learning. So before calculating the cost of a spread but that the spread is just the ask price - the bid price of a currency pair.
There are always 2 prices given in a currency pair, the Bid and the ask. Bid price is the price at which you can sell the base currency and ask price is the price you would use to buy the base currency.
When there is a wider spread, it means there is a greater difference between the prices so there is usually low liquidity and higher volatility.
And lower spread indicates low volatility and high liquidity. Thus, there will be spread incurred when trading a currency pair with a tighter spread.
It refers to how active a market is. It is determined by how many traders are actively trading and the total volume they are trading.
it is the measure of how extremely a market's prices change. Markets liquidity has a big impact on how volatile the market's prices are.
On this note we can understand the types of spreads. So there are two types of spreads that are:
A fixed spread is when the broker guarantees that no matter what happens in the market, the spread will remain the same. As if the spread on EUR/USD was 1 pip, I will stay the same no matter what.
It is based on the market demand. Similar to the price change rates of currencies, the spread can change by growing and lowering. The market then adjust it based on how many people continue to trade that currency pair.
EXAMPLE:
EUR GBP
1.1037 / 1.1039
Now after subtracting= 1.1039-1.1037= 2.
On this note we can say that the spread is of 2 pips.
Or simply 3 pips.
Here is a simple formula we can estimate spread costs. That is:
Spread cost= spread size* lot size* number of lots.
Let's estimate the spread cost from the example above. The size of the lot is $100000 .
{ 0.0003 * $ 100000 * 5 = $150 }
while doing trade in Forex exchange, we also need to consider when to trade the USD /JPY , the USD/JPY has a lot of volatility. One of the most liquid times to trade forex in generally is between 8:00 a.m and 11:00 a.m eastern time, when london and newyork session overlap. The USD /JPY also is highly liquid in the Tokyo session.
basically the spread is most important cost in Forex trading. A new table broker that charges reasonable spreads and offers responsible leverage is the best option for and trader to have experience.
SHORT IN FOREX : A CLOSE LOOK
As we can see that being a trader in any market, a person should be aware of going long as well as going short.
Therefore,
In this article, we are going to learn about what does going short means in the market of foreign exchange.
Basically,
A trader sell short, when he believes the value of any currency pair that he is trading will fall. This is basically what we call going short.
In each and every financial market, including Forex, you sell short When You Believe the value of the currency pair you are trading will fall.
Apparently,
Going short in the forex market follows the same general principle ----- you are betting that a currency will fall in the value and if it does, you make money----- it's a bit more complicated.
Going short, in other words the short position, is essentially the opposite of going long. When traders enter short position they expect the price of the underlying currency to depreciate (go down) .
Short a currency means to sell the underlying currency in the hope that its price will go down in future allowing the traders to buy the same currency back at a later date but at a lower price.
Hence,
The difference between the higher selling price and the lower selling price is known as profit.
Therefore,
Traders look for sell- signals to enter short positions. A common sell signal is when the price of the underlying currency reaches for level of resistance.
Basically,
Level of resistance is a price level that the underlying has struggled to break above.
FOR EXAMPLE :
Let's say GBP / USD rate is 1.3452 , which means one pound is valued at $ 1.3452 . If you expect the value of the pound to fall against the dollar you will sell the currency pair at the rate.
If you bought the pair after the rate went to 1.3441, you would have made 11 pips.
{ PIPS : Percentage in point, a smallest change in the quoted currency pair.}
Hence,
The Math to find the value of a pip in the quote currency for standard lot of a base currency is 0.0001 (1 pip) / 1.3452 (exchange rate of pair) × 100000 ( lot size) = $ 7.43 . That means for you 11 pip gain, you would have made 11× $ 7.43 = $ 81.73 , excluding the commission.
Broker may charge a set Commission perhaps--- $ 5 , for each currency trade of a standard lot they carry out or they may keep the difference between the bid price and the asking price for each trade.
WINDING UP :
If you are thinking about shorting a currency pair, you must keep risk in mind --- in particulars the difference in risk between " going long" and " going short" .
Therefore,
If you are shorting a currency on the other hand, you are betting that it will fall when, in fact the value could rise and keep rising.
Theoretically,
There is no limit to how for the value could rise and consequently there is no limit to how much money you could lose.
When it comes to the foreign exchange market, one should be familiar with the term "going long" in the forex or in other words, one can say" taking a long position".
Basically,
when being using in trade, long refers to position that makes a profit if a currency pair's market price increases.
When a trader trade in foreign exchange market, since they buy or sell in the currency pairs, "going long" means that you are buying the base currency and selling the quote currency .
Therefore,
Taking example, if you go long EUR/USD , you are buying Euros and selling US dollars.
Apparently,
Going long is the opposition of going short or shorting, which means taking a position that makes a profit if a currency pair's market price Falls. Derivatives allow traders to take a long position on a market without actually buying the underlying currency pair.
To trade foreign currency, you buy or sell a currency pair. All currency pairs have a base currency and a quote currency. The pair usually looks something like, USD/JPY =100.00. Here, the USD or, US dollar, is the base currency and JPY or Japanese yen, is the quote currency. This quote shows a rate of $1 being equal to the ¥100 .
Consequently,
Because every currency trade involves a pair, you will always simultaneously go long on one currency shot on the other when making a trade.
Therefore,
When you are long a currency it means you are betting the base currency will strengthen against the quote currency. In the example above you are betting the dollar will be equal to more than 100 yen in the future.
Hence,
In a long trade on this currency pair, you are buying or going long on the dollar and you will simultaneously go short on the Japanese yen. In effect, you are selling the Yen , just like when you short a stock by selling the shares in stock market.
Because you are both buying and selling currencies when you make a Forex trade, you can speculate on the upward and downward movement.
Therefore,
To go long on a certain currency, you open a trade in a buy position because you believe the base currency is bullish ---- likely to raise in value. At the same time it also means you are bearish on the new of the quote currency and it will fall in the future.
Accordingly ,
if you are correct the value of the base currency Rises close out your trade then at the current market price and take a profit.
WINDING UP:
Trend-following traders who watch trend acceleration often go long on a trend position and hope to stay in that trade until the trend expires. Another reason traders may decide to go long a currency is when a central bank announces its plans for monetary tightening, which historically tends to lift its currency's value.
