Trading is not just buying and selling one specific currency at a time. It's actually quite opposite and digs a little it deeper than that.
Let me break it down. A currency is a form of barter or used in exchange for goods and services. Currencies represent the economic strength of one's economy. For example, if a country's economy is doing well their currency will hold high value and can buy more for less. If a country's economy is doing poorly their currency will hold less value and buys less for more.
We can see this when we trade everyday on our price chart. The scale on the left of our charts shows us the value of what 1 currency can be exchange for in return for another.
I use Trading-view to analyze my price charts. You can signup for free here: https://tradingview.go2cloud.org/SH2yl
In this example price on USDCAD is trading at 1.32830. Which means for every $1.00 USD it would cost Canadians $1.32 CAD.
What does that make you think of?
Hopefully it shows you it cost more Canadian dollars to buy less United States Dollar.
What if you wanted to buy Canadian dollar? It would cost $0.68 USD to buy $1.00 CAD. Hopefully it shows you it cost less United States dollars to buy more Canadian Dollar.
Why is this important?
You, the forex trader, trade this information everyday. You use the numbers on the price scale to your benefit to make buying and selling decisions. I'll break this information down in much more detail this week.
You're don't have to use this information on 1 currency pair. You can use it on multiple currency pairs. I want to show you how in my analysis this week.
The Money Monday Analysis this week is based on 3 currency pairs: AUDUSD, NZDUSD, and GBPNZD. You can view it here: https://youtu.be/t_hIO-dsZlU
Instagram has disabled my account. I have to wait it out so be sure you're subscribed to my Youtube channel for more video content: https://www.youtube.com/c/slfxtrading
Have a safe trading week.