For many forex traders, the weekly technical US dollar forecast is a vital part of their trading strategy. The forecast gives them insight into which way the market will move in terms of strength and resistance. This is essential to your success as a trader. There are several ways you can look at the weekly technical report to see what the market is doing. You should pay close attention to this so that you understand where you are in terms of the forex market and the strength of your position.
The US dollar has been on a strong move recently and there have been a number of reasons behind this move. One of the most important reasons is the strength of the Canadian dollar. Canada has not yet broken out of its economic recession as the US has and this has helped to keep the Canadian dollar rather stable. Another reason that this has happened is the fact that oil prices have been very low. This has helped to keep the currency weak versus many other currencies.
As you can see from the above analysis, it is very important to pay close attention to the weekly technical report that you receive. This is not the only thing you need to look at though. You also need to pay close attention to the daily chart analysis that is provided. In the analysis you will find that there are a number of signals that are important to help you to make trading decisions.
When you watch the analysis, you will see that there are five strong moves that are evident. These five strong moves have been called “the Positives”. They include a strength gain, the recovery, the continuation strength, the breakout strength and the retracement. The first two moves, including the recovery, happen quickly and they are considered to be “good” or “solid”. The break out and the replacement happen slowly.
For the analysis to show these strong moves, you will need to watch the technical signals. What this means is that you will need to monitor the strength that they are experiencing. With regards to the Positives, there are two strong moves that happen very quickly. This is known as the Friday Roll. And then, on the weekend, there is a third strong move that happens much slower.
With regards to the daily chart analysis, you should note that there are three distinct periods that occur within this week’s US dollar forecast. These three periods are comprised of a long consolidation, a short consolidation and a break out. It should be noted that this breakout is not a quick one. It is taking place over several days instead of all at once. This gives us a nice bit of time to analyze the strength and the weakness of the move.
The next section of this weekly US dollar forecast will focus on the technical damage. With regards to this, the weak move is being covered up with a strong move. When it comes to the analysis, this weak move may have been partially covered up by the strength of the move that was just created. But, it must be remembered that this strong move could have been just as powerful if not stronger than the weak move. Therefore, you must keep this in mind.
Lastly, you can expect that the markets will be watching the interest rates. This is because the Federal Reserve is now raising interest rates which are meant to cool the economy. So, with this, you can expect that the markets will be watching this closely. Just make sure that you do your own research before making any decisions.