[extreme noob] very new to forex question (need guidance)

Beginner Questions
1

INTRODUCTION (Skip to next heading if you don’t want to read )
Hi guys, im new to trading forex, im 19 (to give you an idea as to how new i am) and i decided to only trade only AUD/USD as i am very new to this and i feel comfortable with just this pair as i am from australia and the USD is the most reported currency in Australia.

I am trying to understand forex through what you guys would call fundamental and technical analysis, i’ve also ONLY RECENETLY learnt about resistance and support as i’ve notice a sort of “pattern” so to speak, in forex charts now i know that as you read this you can tell that i not savvy with forex terminology, but hopefully i will get better as time goes by.

My mind has been extremely boggled yesterday, even as i am typing this my head was spinning as i am both excited and extremely nervous.

My Question
My question pertains to the movement of a forex chart of AUD/USD, here’s the link to the chart that i use for my forex trading, dailyfx.com/charts/netdaniachart/?symbol=AUD/USD My trading times are between 9am-5pm GMT +10 with Daylight Savings in effect.

if you look at yesterday (17th November) which covered the entire window of my trading day, the one with the green circle in the pic below


it rose for the entire day of my trading window then as soon as it was over it started freefalling (it is 8:45am, 18th of November as i type this), now that i thnk about it, it happens quite often, where the AUD/USD rises within my trading time, then falls on the next morning when i wake up to check on it.

I know that there’s something going on rather than pure coincedence, can someone shed some light into this as why “it” happens and by it, i mean why it rose during the day and fell during the night? If i had to guess ONE factor, i would say its because of the overseas markets, but i dont know and im sure there are than just one factor. Thanks for taking your time to read my wall of text from a noob!!! :slight_smile:

2

I think I kind of understand what you’re talking about. It has to do with Market opens and closes. I don’t really know what your time zone is, but it’s probably the start of London when it rises and falls as London closes.

PS, age means nothing here. :wink: Old man.

Regards,
Clark

3

The green are is just a normal retracement during an overall downtrend. Use the Fibonacci tool from the Highs to the Lows and you will see, its almost always the same movement. If you want to know the reason why it is dropping there, you should read something about supply and demand. There is alot of material in the forum and on youtube too. Hope i could help a bit. :slight_smile:

4

Hello clark and phenex, thanks for the advice :), im from the Sydney timezone, which is UTC +10 with daylight savings, i was looking at the economic calendar for US data, i dont recall if its correct, but i read somewhere that when the US economy seems to pick up, the AUD will fall, and the economic data for US are all positive, so im just wondering if that was the main factor

5

Its not so much the economic data, its more the price action by itself. The higher the timeframe, the less you have to care about the news.

6

Good question papermate. Learning to recognize these ‘trends’ and knowing when/where to position a trade will make you a happy trader:60: Good luck with your venture into the massive world of Forex trading…