Forex Trading Opportunities in March
February did not offer many surprises in the financial markets, including the forex market. For the most part, things continued on the same course as we have already seen since the beginning of the year, with a volatile US stock market, gold & silver continuing higher, and the US dollar remaining range-bound.
US Stocks Market Recap
Although the US stock market ended 2018 down pretty sharply, the market has demonstrated an impressive rebound since reaching a bottom last Christmas. From the lowest point in December last year, the S&P 500 index is now up by more than 20% – the equivalent to about three years of average stock market returns!
However, the index now appears to have hit a resistance area in the chart around 2,800, which it will be crucial that it can break through before higher prices should be expected in this market.
For now, the S&P 500 is difficult to trade, with no clear indication on the future direction.
Gold Back in the Spotlight
Gold, maybe the most boring and slow-moving asset of them all, may not be so boring after all. In fact, the yellow metal has posted an impressive 14% return since reaching a bottom in mid-August of last year, and it looks like it still has a way to go.
Strong resistance in the gold market is not found until the 1,350 to 1,360 area, and as of this writing we still have another 2% to go before reaching those levels. And if the 1,360 level breaks, we may be in for some big gains ahead, with no more significant resistance in the chart until the metal reaches far higher prices.
Greenback Stuck in Range
The US dollar, aka the “Greenback”, has shown some weakness lately, and is now slightly lower than at the same time last month. However, the weakness here is not confirmed yet, and we may see moves in either direction in the coming month.
Although it is hard to tell exactly how the US dollar will move over the next month, it is clear that it is currently stuck in a trading range with firm support around the 95-level. If the dollar moves below this level, traders should expect it to move even lower over time. If it manages to break above the 97.50 area, however, we are likely in for a ride higher with the US dollar.
The chart used here is the US dollar index (DXY), which is not traded as much by online traders, but nonetheless provides a good snapshot of strength of the US dollar. Instead of measuring the dollar against other currencies one by one, DXY measures the dollar against a basket of currencies from America’s largest trading partners, including the Japanese yen, the euro, and the Swiss franc.
Free Forex Trading Workshop
Does trading the world’s foreign exchange markets for profits sound like something you want to learn more about? If yes, then come and join for a free two-hour forex trading workshop somewhere in Australia.
We regularly host these free trading workshops where we show you everything you need to know to get started trading like the professionals do, with virtually no upper limit to how much money can be made with the right strategies.
We look forward to seeing you there!