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Weekly Forecasts & Technical Analysis

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Weekly Forex  & Crypto Forecasts

EURUSD – Weekly Outlook for 7th January 2021

BTCUSD Weekly Outlook and Bitcoin Fundamentals, 23rd December 2021

USDINR – Weekly Outlook & Analysis for 17th Dec 2021

What is Forex Market?

Forex is a decentralized market that enables participants to exchange, sell and buy currencies. It is composed of financial institutions, central banks, hedgers, FX brokers and individual traders. This global market facilitates the trade of over 5 trillion dollars per day, making it one of the largest financial markets in the world. The forex market stays open 24 hours a day for 5 days a week i.e. trading hours begin at 22:00 GMT (Sydney) on Sunday and remain open till 22:00 GMT (New York).

The currencies of the market are traded in pairs and are divided into three different categories, namely: major, minors, and exotics. The majors are the most traded currency pairs with highest forex rates, these include Euro/US Dollar, US Dollar/Japanese Yen, British Pound/US Dollar and US Dollar/Swiss Franc. The minors are those pairs that are not traded against US dollar and these are Euro/British Pound, British Pound/Japanese Yen, Swiss Franc/Japanese Yen, British Pound/Canadian Dollar, and Euro/Australian Dollar. The exotic pairs combine major currency along with the currency of developing economy, common examples are US Dollar/ Hong Kong Dollar, Australian Dollar/Mexican Peso and Euro/Turkish Lira.

As currencies in the forex market are traded in pairs, the market does not have an obsolete value for currency, rather it sets a determining value by setting market price of a particular currency that will be paid for the other. This means the average forex rates of 1 USD would be equivalent to X amount of JYP, CAD or CHF. Hence, the essence of forex trading lies on the currency pair that you choose.

Forex Trading in India

The realm of forex trading in India is as diverse as it can be. Most of the traders are inclined towards those currencies that have had a benchmark against INR. Some of the key pairs that investors love to trade are:

- EUR/INR
- USD/INR
- JYP/INR
- GBP/INR

You can trade with the help of Indian brokers who provide a platform to trade on various exchanges such as Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and MSC-SX because these exchanges give 100% access to derivatives of currency. At times, Indian traders are not able to trade USD/YEN or EUR/USD, as the RBI (central banks) may lose quite a lot of funds when the trader loses. This is because, the investor has to purchase more funds, and this increases the present account deficit.

Today, not just established intuitions or investors, but even small-scale participants are able to reap maximum benefits from forex India. With the help of secured web technologies, proper information about the forex market, even individuals are able to speculate the movement of currencies and place their winning order in a seamless manner. Even though trading currency is not free from risks, yet the derivatives are able to efficiently manage the risk and feature spectacular benefits such as:

-Speculation: If the fundamental analysis indicates that there would be a steep rise in the price of oil which would impact the import bills of India, then you must trade with INR/USD with a prediction that the value of INR would depreciate with time. On the other side, if you predict stronger exports from certain sectors then you should probably sell USD/INR.

-Hedging: When you want to improve your FX exposure then you can consider purchasing a major currency pair i.e. INR/USD and then fix a payout rate. Remember: in forex India such a type of hedging should only be performed when you know that USD/INR is going to depreciate.

-Leverage: Brokers let you place your trade using leverage, which is a unique feature of forex trading without actually having to own them. Let's say your leverage is 10:1 then for every 1 INR that you use the value of the trade would be equivalent to 10 INR.

How Can I Start Forex Trading?

The dynamics of the forex market is quite similar to equity markets, as those who want to participant have to open a trading account. Now, each type of forex account varies from one another and so does their services. Hence, it is important to determine the right type of account that will be suitable for you and then begin your journey as an FX trader. Thus, in order to start forex trading there are two things that you will need:

-A reliable online forex broker and
-A suitable forex trading account

There are innumerable brokers who guarantee to come up with exceptional services, however only a few are able to stand upon the claims that they make. Instead of choosing any random broker that you come across, research more about the company, the services that it has in store (education and expert help in the form of eBooks, PDF and articles). You can even consider the experience of the broker and how well it has been its business so far. These are the best indicators to determine whether you are about to choose a reliable forex broker for online trading or not.

Next, the type of account that you choose is as important as the broker. Most of the trading accounts are categorized into different types based on the assets that you get to trade, leverages, margin, lot size and commission fees. If you are a beginner who is new to the world of online trading then it is advised to opt for the initial accounts designed for novice traders. To open such accounts you need as less as 500 INR. While professional traders can opt for the advance accounts that offer complete access to the services of the broker.

What Are Cryptocurrencies and Why to Trade?

Cryptocurrencies are virtual currencies that are based on the framework of cryptography for creating additional units, securing transactions and verifying transfer of assets. Unlike any other currency, these are not controlled by central banks or the government and thus operate as one of the largest decentralized electronic currency network that have evolved to become an alternative to the traditional currencies. ICO (Initial Coin Offering) is a medium through which various cryptocurrencies are raised for new ventures.

Even though there are no regulatory authorities, still basic algorithms of the currency stipulate how the currency will be created and its advance rate. These currencies do have a limited supply and that is something that increases their value and demand. For instance, in Bitcoins (BTC), a new coin is generated when miner discovers a new blockchain. Due to the complexity of mathematical algorithms, the generation of blocks have decreased significantly and this keeps the supply of coins limited.

With this it can be stated, that blockchain technology holds the ability to revolutionize the financial system of the globe. This is something that makes crypto-market a lucrative platform to trade on as:

Free Market: The cryptocurrency market is a place with minimal regulations and restrictions, providing a pool of opportunities for traders from different parts of the world. Unlike any other currency market, this market stays active 24 X 7, allowing you to trade anytime and from anywhere.

Quick Settlement: Selling or buying stocks comes with a delay in terms of settlement time. However, such complications never happen in case of cryptocurrency as blockchain technology completes the process of settlement in no time.
No Withdrawal Limits: Trading on cryptocurrency market is quick, fast and effective. Plus, you are able to withdraw all the profits that you make at once, as majority of the exchanges do not impose any sort of withdrawal limits on the trader.

Brokers Offering Cryptocurrency Trading with Bitcoin, Ripple, Ethereum and Others

With the growth of cryptocurrencies to unimaginable heights, acquiring almost $190 billion dollar market capitalization by the end of this year. Its overall growth has not only been rapid but even had a widespread impact, leading to the development of new currencies, associated startups and major players becoming a part of the exchanges. As speculators and investors become interested in the sector, the demand for a certified broker turns out to be more important than ever. Here is a list of potential crypto brokers that you should look after:

1. IQ Option

This particular broker offers something or the other for traders and cryptocurrency trading is one of them. Some of the currencies that you can find here are: Ripple, Bitcoin, Ethereum, Bitcoin Cash, Monero, Ethereum Classic, Zcash, IOTA, Litecoin, Santiment, OmiseGo and Monero. Its large section of resources and tools combined with a user-friendly interface makes trading digital currencies a seamless experience. You can begin trading some of the best currencies of the crypto market just by opening an account, making the initial deposit and then choosing the currency that you want to trade. Read IQ Option Review

2. Binomo

This binary options broker delivers an impressive section of cryptocurrencies, indicating that soon peer-to-peer electronic cash would be similar to the common currencies used every day. It provides only one type of account called as the real account which can be opened with a minimum deposit of $10. Binomo Review

3. OlympTrade

This is one of most trusted binary options broker that allows crypto-depositors to trade some of the major cryptocurrencies against other types of currencies, making it part of the list of crypto brokers that allow you trade digital coins against real currencies. It supports Ethereum, Litecoin, Bitcoin Cash, IOTA, Dash,BitGold, Monero, ZCash, Ethereum Classic and Bitcoin. Olymp Trade review

Ethereum (ETH) vs. Bitcoin (BTC) 

Bitcoin (BTC) that came into existence in 2009 stands to be the strongest cryptocurrency ever and is followed by the second most powerful currency- Ethereum (ETH). Despite of being digital currencies, both of them are quite different from one another. For instance, the programming language that operates ETH is Turning complete, while for Bitcoin its core is based on stack of languages. Another noticeable difference between the both lies in the block time. Transactions in bitcoin price takes minutes for confirmation, while in case of ETH it is confirmed in seconds.

On a general note, the purpose of each currency is different from the other. While the agenda of Bitcoin India was to provide an alternative to the traditional currency, as a result of which it became a medium of transactions, Ethereum was established to perform peer-to-peer applications and contracts via its signature currency cycle called as ether. Though they function as the premier cryptocurrencies of the market, yet the purpose of Ethereum price was not to be an alternative to cash rather monetize the functioning of ETH so to aid in the development and distribution of apps (DApps).

Therefore, it can be concluded that Ethereum is a form of advancement from the classic blockchain technology of Bitcoin India. Yet, the rise in its market cap and prominence brings makes a stiff competition for other contenders in the crypto market. In fact, like bitcoin even Ethereum price had a surge, making its overall market cap more than Litecoin and Ripple altogether, even though it's still far from the race of defeating Bitcoin price. Hence, Ethereum and Bitcoin are structured with blockchain technology that have established their mark in the market, yet their driving force remains to be different.