The recovery in risk appetite has caused weakness in the greenback and the yen. The EUR/USD pair is looking bullish due to the bullish recovery in risk sentiment. The resistance levels are 1.1517, 1.1570, and 1.1624. The support levels are 1.1328, 1.1269, and 1.1222. The USD/JPY pair is consolidating with both the currencies looking weak due to risk-on market sentiment. The resistance levels are 107.86, 108.23, and 108.54. The support levels are 106.43, 106.15, and 105.21. […]
Trading suggestion: . There is a possibility of temporary retracement to suggested support line (1.0673). if so, traders can set orders based on Price Action and expect to reach short-term targets. Technical analysis: . AUDNZD is in a range bound and the beginning of uptrend is expected. . The price is below the 21-Day WEMA which acts as a dynamic resistance....
Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. You may lose more than you invest. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. The information on this website is not directed at residents of countries where its distribution, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
^ The total sum is 200% because each currency trade always involves a currency pair; one currency is sold (e.g. US$) and another bought (€). Therefore each trade is counted twice, once under the sold currency ($) and once under the bought currency (€). The percentages above are the percent of trades involving that currency regardless of whether it is bought or sold, e.g. the U.S. Dollar is bought or sold in 88% of all trades, whereas the Euro is bought or sold 32% of the time.
Some investment management firms also have more speculative specialist currency overlay operations, which manage clients' currency exposures with the aim of generating profits as well as limiting risk. While the number of this type of specialist firms is quite small, many have a large value of assets under management and can, therefore, generate large trades.
Both types of contracts are binding and are typically settled for cash at the exchange in question upon expiry, although contracts can also be bought and sold before they expire. The forwards and futures markets can offer protection against risk when trading currencies. Usually, big international corporations use these markets in order to hedge against future exchange rate fluctuations, but speculators take part in these markets as well.