A Study Of The Euro And US Dollar In The Foreign Exchange Market Using Technical Analysis Tools

Abstract

This primary goal of this article is to examine the price movements of EURO and USD currencies to understand the growth of FOREX market. These two currencies were selected for the study with an assumption of each being an effective representative of the FOREX industry in the entire world. This study also discusses about one of the tool i.e. technical analysis which helps in analyzing the foreign market before taking investment decisions by the investors. Technical Analysis is a study of the foreign exchange price market considering factors related to the supply and demand. This is very useful method of evaluating securities by analyzing the statistics generated by market activity, such as past prices and volume. This study used four indicators in technical analysis and the results of these indicators show that almost similar patterns in the stock prices and also provide almost similar signals to the trader/investor. The reason for choosing these indicators is because most of the traders use these as a base when it comes to the foreign exchange market. To conclude this study provides a good exposure in technical analysis of the Foreign exchange markets around the world giving an example of one of the most majorly traded currency pairs which is the EURO and US DOLLAR.