In forex trading we have to analyse the fundamental and technical of a currency in order to make a trading decision.
Fundamental Analysis
There are 3 fundamental criteria to determine which currency to sell:
a) The currency must have low interest rate. Naturally investors want to invest in currencies for their yield. Hence those currencies that has higher interest rate will be attractive to investors. Those currencies that has low interest rate will be dumped by investors. Euro has interest rate of only 1% so Euro is not attractive to investors.
b) The nation has budget deficit. Budget deficit means that the nation is spending more than it earns. Eurozone is in a huge budget deficit now.
c) GDP growth is negative. Healthy GDP growth increases confidence to investment community and hence higher probability of capital appreciating. Contrary when GDP growth is weak, investors will dump the currency of the nation. Eurozone has a very weak growth growth hence investors will prefer to dump Euro rather than investing in Euro.
Based on the above criteria, EURUSD does look like a currency to be sold.
Technical Analysis
After determine which currency to sell, we will check out on the trend of the currency. The saying “the trend is your friend” is always true. We will use our Trend Identifying Strategy to determine the medium term trend of the currency pair. It is easier to ride with the trend rather than the go against the trend. According to our Trend Identifying Strategy, EURUSD is in a downtrend.
Our conclusion is that EURUSD is an obvious sell.
In our Forex Education Program, we had been informing our students on the various sell opportunities for EURUSD:
1. EURUSD: 44 Pips Profit
2. EURUSD: 54 Pips Profit
3. EURUSD: 99 Pips Profit
4. EURUSD: 85 Pips Profit
(Click on the links above to view the trades in detail)
So what is the opportunity of a life time? The opportunity is that EURUSD will continue to fall. So there are a lot of opportunities to profit from selling EURUSD.
Does that means that we can just sell EURUSD now? Of course NO! In forex trading we had to sell at precise entry level or else we may get stopped out or get margin call before EURUSD starts to fall.
In our forex education program, we teach our students how to identify precise sell entry levels. If you want to participate in this sell EURUSD opportunity, do send us email at metal.commodity@tradingeducationprogram.org.
Course of our forex education program is only USD300 (software included). If you are interested, please make payment of USD300 to our paypal account at metal.commodity@tradingeducationprogram.org.
Upon signing up for our education program, you will receive the followings:
A) One to one coaching on our trading strategy.
B) 56 page manual on our strategy.
C) Live trade signals for 2 months.
D) Software tools for conducting quantitative tests and generating alternative signals.
E) Live updates on the trades of the big boys (hedge funds, investment banks, central banks) for 2 months.
Pingback: Opportunity of a lifetime | TheFinance.sg
I think you are over-simplifying things, macro-economics and international interplays also play a part. As I read the 3 points in your FA, I feel it also applies to US, not just Europe. Just on FA, AUD is stronger than USD – but look what is happening ? Simply, when there are chaos in the market, market drops, USD usually rises – regardless of the FA, and even though in FA terms, AUD is stronger than USD – it is falling against USD now.
We look at other areas as well. Most important thing is that based on our analysis, we are able to produce profitable trades.