The year 2016 has proved to be quite an interesting year for the forex market as there has been a lot of significant events around the world, which consequently affects the standing of different currencies. Some of these events include the Brexit, spike in gold prices, the drop of the Pound, and much more.
The instability of global economy raises the question as to whether September is a good month to trade forex. Well, this will all depends on your knowledge of the market and your appetite for risk taking.
Before you make the decision, here are some things you should know about the Forex market this month.
The Steady USD/JPY Pair
Though US stocks are dropping by 1% in the last few days, the USD/JPY pair is able to maintain steady. However, the JPY is expected to hit 102.6 before it goes back up. The frailty of the Japanese economy and the drop in the US stocks will play a big role in the movement of the pair in the forex market. You may want to consider playing this pair due to its steady movement, especially if you don’t want to take big risks.
The Breakout of EUR/USD Pair
With the EUR/USD showing a lesser movement than it is supposed to, investors are expecting a breakout in the market with regard to this pair. There are some traders who see this as an opportunity. However, if you don’t know how to properly execute a breakout trading, then you might want to take a sit back. After the breakout, traders can only wait to have an estimated measure of the next movement of the pair–whether it will spike up or go down.
The Bullish GBP/JPY Pair
During the month of August, we’ve seen the GBP/JPY display bullish movement with its big rise. This leads to the belief that when the next drop comes, it will be good to buy the pair and sell it within the month. For conservative traders, the best idea is to sell currency when the peak has just passed and is dipping down a little.
The Volatile NZD/CHF pair
According to the movement seen on today’s live charts, the price for this pair, which recently took a drop, is slowly going higher again, especially at the end the first week of the September. This trend shows that it is a great time to buy currency from this pair. However, if you are selling, you might want to wait a little longer. This type of volatility in the NZD/CHF pair makes it a little riskier.
If you want to trade right now, you have to do your homework properly. Read free forex charts and graphs to get a feel of the market.
Once you’ve personally analyzed currency pairs and weighed all your options in, you can start creating a trading strategy. If you can’t devise any strategy that’ll work well in the current market, it’s better if you wait another month.