FOREX THEORY
Currency Crosses Are Trend-y
Since a majority of the forex
market will deal with the U.S. dollar, you can imagine that many of the news
reports will cause U.S. dollar-based currency pairs to spike. The US has the
largest economy in the world, and as a result, speculators react strongly to
U.S. news reports, even if it doesn’t cause a huge fundamental shift in the
long run.
What this means for your charts is
that you will see several “spikes” even if there is a trend emerging. This can
make it harder to spot trend or range indications.
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