Understand the Basics of Forex Investing.
Before jumping into the foreign exchange markets and starting trading, it’s important to understand some of the basics. Learn key terms like pip, spread, carry trade and lot size. Also be sure to familiarize yourself with basic and fundamental market analysis so you can make smart trading decisions.By understanding the technical aspects of Forex trading, you’ll be better prepared for producing profitable trades.So far, the year 2023 has been eventful across several financial markets. As we step into March, it's time to prepare for the benefits the markets have in store. In this article, I will look into a few interesting, promising setups.
GBPAUD
One of the best Forex investments to make during March is in the Great Britain Pound versus the Australian Dollar (GBP/AUD).
Although this currency pair saw a downturn in February, trends indicate that it will start to climb soon.With strong performances from Britain’s manufacturing industry, traders can expect this pair to see an increase in value throughout March. GBPAUDDaily00.png The Daily timeframe of GBPAUD presents an entry from the rally-base-drop supply zone at the highlighted area. This entry naturally coincides with the 88% of the Fibonacci retracement tool and therefore grants an added confluence to our bearish sentiment.
- Direction: Bearish
- Target: 1.76525
- Invalidation: 1.90100
EURAUD
The Euro to Australian Dollar (EUR/AUD) pair may prove an attractive trading opportunity during the month of March as it typically provides large swings in price that can be capitalized on by traders.
The pairing could be subject to more volatility since Europe is preparing for Brexit and Australia has recently seen declines in the equity market due to trade tensions between China and the US.That speaks towards a potentially profitable trading environment where investors could make quick returns if they enter trades at the right moment. EURAUD is another lovely setup on the weekly timeframe. Here we see price trading within a supply zone, a resistance trendline, and the 200-period moving average serve as the additional confluences that help solidify the bearish sentiment. Not to forget, the supply zone also matches 88% of the Fibonacci retracement tool.
- Direction: Bearish
- Target: 1.51700
- Invalidation: 1.62000
CHFJPY
With Brexit negotiations continuing to impact global markets, the CHF/JPY could be a smart place for investors to place their money during March.CHFJPYWeekly00.png From a weekly point-of-view, the bearish sentiment is solid and clear. The price chart shows the price action reacting to the supply zone created by the previous market structure break. As a result of the trendline resistance and the 88% Fibonacci retracement level, it is safe to consider this another beautiful trading opportunity.
- Direction: Bearish
- Target: 142.6
- Invalidation: 148
USDCAD
The US dollar to Canadian Dollar (USD/CAD) rate is expected to remain relatively steady during March. Recent developments in US agricultural exports have seen the CAD increase in early March, but improvements in the US economy are likely to keep this pair relatively stable by the end of the month. Investors should keep an eye on oil prices and industry news that could affect this currency pair. USDCADDaily-2802.png USDCAD is the final setup to consider in this piece. The 50-Day moving average has recently crossed below the 100-Day moving average, suggesting the possibility of lower prices. There is also a confluence of the trendline resistance and the supply zone, solidifying the bearish sentiment alongside the 88% Fibonacci retracement level.
- Direction: Bearish
- Target: 1.33855
- Invalidation: 1.36600
CONCLUSION
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
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