Exotic Currency Pairs:
Exotic currency pairs are made up of one major currency paired with the currency of an emerging economy, such as Brazil, Mexico or Hungary.
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RISK WARNING: CFD-retail client accounts generally lose money.
Trend Lines
The first way to spot a possible breakout is to draw trend lines on a chart.
To draw a trend line, you simply look at a chart and draw a line that goes with the current trend.
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There can be correlations between stock markets and certain currencies or pairs in the forex market. Lets take a look at the Nikkei and the USD/JPY pair as an example. Originally it was assumed that Nikkei stock market was a good reflection on the strength of the country.
The Elliott wave principle is a form of technical analysis that finance traders use to analyze financial market cycles and forecast market trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors.
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Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security���s price.
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The Commodity Futures Trading Commission, or CFTC, publishes the Commitment of Traders report (COT) every Friday, around 2:30 pm EST.
The COT reports provide a breakdown of each Tuesday’s open interest for futures and options on futures markets in which 20 or more traders.