or in recent market hours may suggest price action is imminent. For example, if you have 10,000 in your account, you wouldnt bet more than 100 to 200 on a single trade. The worlds biggest economic region is the EU (European Union) with a GDP of more than 13 trillion. Its worth noting support and resistance are usually areas, instead of specific prices. Stability misconception, traders often take for the granted the power and stability of US economy over other economies, such as Australia. The Euro has a unique position within the Forex market as it represents the currency of numerous countries rather than of a single nation. It has seen an increase of in excess of 30 over the US dollar. There are sometimes disagreements that occur between the various governments within the European Union about the unions future course, or its monetary policies.
Not keeping up-to-date with political and economic sentiments in both could lead to costly mistakes. When the reverse signal does then occur, take your trade when the price moves just above the consolidation near your support, or just below consolidation near your resistance. In fact, the Australian economy has grown year-on-year since 2001, facing just one obstacle during the 2008 global financial crisis. What are the Benefits of Trading a Minor Pair? Political announcements natural disasters. Role of US Dollar You cannot make accurate daily forecasts, let alone 3-month or 12-month AUD/USD forecasts without understanding the crucial role the US dollar plays.