EURUSD trading using fundamental news
Hello friends of Project Hope, I hope you are all doing well. Today I would like to share with you a post where I will share a trade that I consider good. It was a trade that I made hy, considering the fundamental macroeconomic news and the possible reaction of a Forex asset, in this case the well known EURUSD.
Generally, most people who trade say that you have to stay out of the markets when there is news, because the markets go crazy, they become very difficult to trade, however, it will depend on the approach, the risk control you have. Knowing how to interpret the news has its particularity and it is important to know something about economics to have a better chance of gaining something from the market.
Well, the first thing I considered today was that there was an important news today, as it was the US Gross Domestic Product (GDP) data, which speaks of the financial health of this country.
Being simplistic in the interpretation and without wanting to complicate, the idea here is to know which is the previous value, which is the forecast, and depending on what comes out, we will logically have an idea of where the market will go. For example, the previous GDP was 4.9%, it was expected to come out at 2.2%, and it came out at 3.3%. As can be seen in the following image.
Considering this, and evaluating what could happen in the EURUSD pair. I came to the following conclusion. If the dollar strengthens with this news, it means that more Euros will be needed to buy US dollars. This means that the EURUSD forex pair should go down. In this case, what I had to consider was a sell of this pair, which is what I did. I let a few minutes pass, just in case there was some manipulation before settling into the trade.
As you can see in the images below, the operation went very well, and in a couple of hours, I had almost reached the TAKE PROFIT I had set. Of course, not always everything goes as expected, but still, it is worth daring to this type of analysis and we can have good entries, but with a good risk control, especially the latter is the most important.
I hope this post has been useful for you. GREETINGS.
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