Is it okay to continue FOREX trading in the backdrop of the surge in the gold prices?
Gold market had a gala time last week after a long gap. According to the international economic experts, it was a resultant factor of several aspects in toto. However, the prominent trigger was Bank Of Japan that announced monetary policy last week. Thankfully, it ended the consolidation happening consistently for a few months. The rates of gold were quite stable for a long time, and the recent movement has certainly given thrust to the economy worldwide.
Is it good to continue with FOREX trading?
It is a fact that successful FOREX traders outperform by making sound strategies that do not get affected by such time-bound change. Upsurge or downfall in the currency rate is a regular phenomenon. Factors like movement in the Gold prices, Crude oil rates, and Dollar price affect FOREX worldwide.
Seasoned traders are clever enough to reap profit in every situation. They know that using a single strategy isn’t a wise thing. Therefore, they apply a dynamic strategy that is fruitful in every situation. A profitable trader adapts strategy in accordance with the global and local aspects, e.g. gold price or share bullish (or bearish) share market.
According to the analysts, the market will show sensitivity towards the news of US Market underperforming against the forecast. Since there is a gap between forecast and reality, it is difficult to believe on it further. Dollar seems to be further cheap, and it will keep the prices of gold oscillating between flat to fizz.
What is the scenario in the next quarter?
Technical analysts assume that the unexpected surge of the recent past won’t be able to maintain the momentum. Ear-term resistance is expected to make it below current levels or current levels. Crude oil also shows resistance at 46. The upward momentum may ebb after a high. It will be a reversal of the current upward move, and FOREX will also not remain unaffected by it.
Whether one applies support and resistance strategy, trend trading strategy or Fibonacci trading strategy; nothing can guarantee an all-time success. It is important to keep on shifting the gears according to the terrain. “Wait and watch” is the right strategy sometimes and in some situation, offense is the best defense. FOREX market is going to be volatile in the coming months due to global factors. Seasoned FOREX traders will squeeze the maximum juice by picking the best oranges!