The ultimate list of FX articles to help you trade fx profitably.
A flat yield curve occurs when there is little difference between the interest rates on government bonds for different maturities. For example, the rate on the one month bond might be similar to that of the 3 month or 1 year bond as illustrated in the chart below. Read more >>
A double bottoms pattern is the inverse of a double top pattern. When such a pattern forms, it is a strong signal that a downtrend is reversing. A double bottoms starts with a prolonged downtrend, followed by a rise and then another drop to about the same level as the original low of the downtrend. Finally, we see another substantial rise from the second low. The double bottom patter should eventually emulate the letter "W". Read more >>
If you have been following the plight of the JPY since the earthquake you will know that it has been hit significantly falling against all major cross currencies, however, the MACD indicator shows that the currency might be oversold and set to rally against major cross currencies. Read more >>
The Williams %R indicator is a well known momentum indicator that was created by Larry Williams. The aim of the indicator is to measure how close a cross currency is trading to its high over the past n number of days. The theory behind the indicator is that the closer a cross currency is to its high the more overbought it is. Conversely, the close to the low, the more oversold it is. Read more >>
In this article we discuss the use of the MACD indicator in FX trading, for some practical examples of how the indicator works as well as a little more description on how the indicator works, please watch the video at the bottom of this article. Read more >>
In a previous article we looked at how interest rates affect fx rates. If you are not familiar with this concept, you should first review that article before reading on. This article looks at how the yield curve can be used to predict future interest rate trends. Read more >>
In recent times, the USD has been sold off against all major cross currencies. This article looks at why the USD has performed so badly and looks at the future of the Greenback. Read more >>
The devastating floods that have rampaged south east Queensland, including the CBD area of Brisbane, are set to keep the Australian dollar low vs. cross currencies for at least the next 6 months as Queensland recovers from the significant loss of business infrastructure. Read more >>
The foreign exchange market works a little differently to the stock or commodity markets. Specifically, you cannot look at one currency in isolation to form an exchange rate. You must look at a currency in conjunction with another currency in order to form an exchange rate. Exchange rates are always expressed as a combination of two currencies. Read more >>
To answer the question on how interest rates affect foreign exchange rates, you should first refresh yourself on what a foreign exchange rate is. It’s always a combination of two currencies (e.g. USD/AUD or EURO/USD). Read more >>
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