Training is all about testing different theories and beliefs. Reading something in an article and a book can cast doubts for you. It is the doubts that can be figured out and solved if you train on forex exchange rates through practical application. NZD/HUF is just one pair you may want to assess forex charts with. It might be possible to see some indicators of pattern changes that are not seen on other NZD pairs.
Forex Exchange Rates Based on Indicators
Technical indicators look dubious when you first learn about them. You have things like wedges, flags, head and shoulders, candlesticks, double tops and bottoms, and more. You are supposed to look at a chart for a currency pair and find these weird looking shapes. To help you correlate this a little the NZD/HUF pair was pulled up for a five year period.
Starting with forex exchange rates for a five year period helps you see if there was any specific trend that lasted for a long time. It should not be surprising to you that from 2008 to 2012 the NZD/HUF was in an uptrend, with the HUF or Hungarian Forint losing value against the NZD. Europe as a whole suffered during this time from the global recession, so an uptrend able to hang on for several years is not surprising.
With things getting a little better in the European region, this pair changed from an uptrend to one of mostly consolidation. In the last year forex exchange rates have barely made it out of the 175 to 185 range. It might not look like consolidation with the 10.000 pip difference, but you do not see the pair truly climbing until it broke out after a double bottom. A double bottom shows two peaks, inverted. After the second peak the rates went to a new 52 week high reaching 198.62. You could consider what happened next to be a head and shoulders pattern. Three peaks occurred at the high. The first peak happened just before the new high, and then a third peak appeared slightly below the high. It creates a triple top, which is known to happen before a reversal. Add in the new high and it was bound to turn around according to most technical investors.
Forex Exchange Rates and Changing Patterns
The NZD/HUF’s change of pattern is something many feel you can predict. It was the double bottom that appeared after some profit taking on the NZD gain that further solidified the downtrend this pair has been in.
Forex exchange rates turned heading down to 171.28. This was also a new low. The little peaks that occurred during this downtrend were more profit taking. You could consider May and June to be a period of uncertainty in terms of the low point. Sometimes investors are unsure if the lowest point is reached on a reversal, so profits are taken, yet the trend can eventually continue.
The latest numbers for the pair have showed a return to over 177.000, which could be another reversal for a new trend or it could just be more profit taking. Indicators will reveal the pattern in time.