Frequently asked questions about
forex technical analysis

Although exchange rates are affected by a lot of factors, in the end, currency prices are a result of supply and demand forces. Supply and demand for any given currency (its trading value) are influenced by several factors. These elements generally fall into three categories: political conditions, economic factors, and market psychology. Deltastock analysts team is responsible for providing on-time information about the factors mentioned above. The news is updated continuously, and they can be seen on our web-site and also trough our trading platform.

In the foreign exchange market a lot of methods are available for research and forecast forex markets. Technical and fundamental analysis are mostly used.

• Technical analysis is a method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity.
• Fundamental analysis is a method of evaluating a security by attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors. Fundamental analysts attempt to study everything that can affect the security's value, including macroeconomic factors (like the overall economy and industry conditions) and individually specific factors (like the financial condition and management of companies).

Deltastock's trading paltform, allows users to perform both technical and fundamental analysis.The reliable news center integrated in the platform allows easier use of the fundamental models, while the charting system gives users the option to use plenty of professional technical indicators. Even if you do not have the time to get familiar with the analytical concepts in depth, you can use the analyses, prepared by our specialists and published every day here.

Support and resistance represent key junctures where the forces of supply and demand meet. In the financial markets, prices are driven by excessive supply (down) and demand (up). Supply is synonymous with bearish, bears and selling. Demand is synonymous with bullish, bulls and buying. The concepts of support and resistance are undoubtedly two of the most highly discussed attributes of technical analysis and they are often regarded as a subject that is complex by those who are just learning to trade.

• The support level is a price level where the price tends to find support as it goes down. This means that the price is more likely to "bounce" off this level rather than break through it. However, once the price has passed this level, even by a small amount, it is likely to continue dropping until it finds another support level.
• The resistance level is the opposite of a support level. It is where the price tends to find resistance as it is going up. This means the price is more likely to "bounce" off this level rather than break through it. However, once the price has passed this level, even by a small amount, it is likely that it will continue rising until it finds another resistance level.

Information about the support and resistance levels of the instruments we offer can be found here.

A commodity currency is a name given to currencies of countries which depend heavily on the export of certain raw materials for income. These countries are typically developing countries like Burundi, Tanzania and Papua New Guinea; but also include developed countries such as Australia and Iceland.

In the foreign exchange market, commodity currencies generally refer to the Australian Dollar, Canadian Dollar, New Zealand Dollar, and the South African Rand.

For example, a large portion of the Canadian economy is tied to the price of oil, which causes the price of this commodity to become a major driver in the value of the Canadian dollar. Therefore a rise in commodity price can possibly lead to a rise in the value of a country’s currency, and vice versa.

A major traded currency, such as the Swiss franc, used by investors and fund managers seeking a safe haven for their funds, particularly in times of political turmoil.

The Bull currency traders are with expectations that the given market or currency pair will have an up trend over an extended period of time.

The Bear currency traders are with vice versa expectations i.e. the given market or currency pair will have a down trend over an extended period of time.

Currency hedging (also known as Foreign Exchange Risk hedging) is an approach that is intended to manage the degree of risk that may be present when engaging in some type of foreign investment strategy. Essentially, the structure of a currency hedging process would attempt to compensate for any shifts in the relative value of the currency type utilized in the investment scheme. The goal is to minimize the exposure of the investor to unfavorable shifts in the money market,so that a reasonable return on the investment will be achieved even if the currency involved takes a fall.

On some markets everyday meetings are held, where an official fixing on the buy and sell levels is done. These levels are related with the current market conditions, as the Central Bank often influences the currency fixing by controlling the money supply.