Economic news trading strategy – Forex trading long Silver at lower trend line [Video]
![Economic news trading strategy – Forex trading long Silver at lower trend line [Video]](https://editorial.fxstreet.com/images/Markets/Currencies/Crosses/XAGUSD/pile-of-us-nickels-13225037_XtraLarge.jpg)
The last video was titled Trading Short on NZDCHF & NZDUSD.
We looked at the surprise SNB lowering of Interest Rates and the possibility of opportunities and dangers.
The best opportunity seemed to be NZDCHF and look what happened!
Price action bounced off resistance and fell over 90 pips.
You could have used an indicator like the stochastic oscillator to time your entry and exit.
This is a classic strategy for trading economic news events.
Even better were our USD trades last week.
Price action moved against the trend when Jerome Powell talked about lowering Interest Rates.
Following the trend gave us some perfect opportunities to follow the stochastic oscillator and go short.
You might be saying, “Well, these opportunities don’t come along very often.”
Actually, they do! And, this method is my preferred strategy.
And, as long as you don’t panic on lower time frames and you ensure that you employ proper risk management, you can trade successfully with this method.
The reversal of USD saw Gold rebound from its record highs but keep an eye on support at around $2150.
Silver was not at record highs by any means but price action bounced off resistance and it is now at a lower trend line.
Just keep an eye on your technical indicators and the US economic news later this week.
Author
Brad Alexander
FX Large Limited
Brad became fascinated with the Currency Markets from a young age and researched fundamental analysis.
