can make much better trading decisions. After the order is executed, theres no way to hide it, as exchanges (and consequently. We frequently see these variables changing only after price corrections in the value of the currency. The screenshot below shows that, first, the unemployment rate declined (blue line marked with 1) which was followed by a rally of the US-Dollar (red line market with 2). 1- Interpret the direction of their trading. As such, the odds are that professional traders will spot some opportunities faster than the average trader. Remember, knowing when not to trade is just as important as knowing when to trade, and the next few days are definitely NOT the time to trade! Besides being the traders with the largest amount of capital, these are also the traders with access to more information and knowledge about the markets. The screenshot below shows the bund (the German government bond) as the blue line and the EUR/USD in red. VSA indicator shows, and one of the most prominent supply ones is a wide range bar, closing on the lows, with volume above the average. Early 2014, the bund price started to rise, indicating a higher demand which leads to falling bond yields.
What followed was a sell-off in the EUR/USD, accompanied by a steady increase in US-Dollar net long positions as the blue arrow indicates. US-Dollar Index for US-Dollar Forex pairs Forex traders who trade Forex pairs that include the US-Dollar should monitor the US-Dollar Index, or at least know what the US-Dollar Index is currently doing. Most traders will say that they are purely technical traders and then use that as an excuse to avoid following fundamentals. Interest rates are arguably the most important factor when determining currency rates and rising interest rates typically lead to an appreciating currency because of increased demand for that currency. Know what the smart money is doing and be on their side when they act.