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XAU USD News Strategies - Example illustration of XAUUSD News Trading

Economic news releases for XAUUSD often evoke strong moves in the XAUUSD currency pair, creating a lot of short-term XAUUSD trading opportunities for XAUUSD breakout traders.

However, not all economic reports for XAUUSD are tradable. Some of the economic news have a significant effect on the XAUUSD currency pair while others do not have any effect on XAUUSD currency pair. By looking at the economic calendar traders can find out the significance of the upcoming reports for XAUUSD, and find out whether the economic report is worth trading or not when analyzing XAUUSD currency pair.

The Gold Forex news reports are marked in terms of their significance. There are 3 levels of significance: RED, ORANGE, GREEN. The most significant news reports for XAUUSD are marked in red: the least significant for XAUUSD are marked in green, while those marked and labeled in color orange are in between.

XAU USD News Strategies:

Trading the XAUUSD breakout channel - XAUUSD News Trading Forex Strategies

Traders simply set Buy & Sell stop orders on both sides of XAUUSD price channel, so when the XAUUSD news data comes out one of the XAUUSD orders will probably be hit. Although this method is very simple, it also carries risks of potentially hitting the two XAUUSD orders: Buy & Sell XAUUSD trade orders as the market is volatile due to and because of the economic reports. In such a double-hit situation traders will face losses on one or sometimes even both XAUUSD trades.

By analyzing the XAUUSD news report - XAUUSD NEWS Forex Strategies

Traders can predict most probable outcome of the XAUUSD news by looking at the XAUUSD economic calendar fields labeled as Forecast and Previous. These news figures are then compared with the economic data released to give an idea about the current economic situation so as to analyze how to trade the XAUUSD currency pair.

Traders trading XAUUSD watch the news report and pay attention to the actual numbers released. If the XAUUSD numbers come as a surprise meaning the reports are not close to what was expected or forecasted, then fundamental analysts opening XAUUSD positions will do so according to the economic reports - If the XAUUSD news report is better than expected then fundamental traders open buy positions. If the reports aren't favorable traders open sell positions.

The most important thing you have to know about XAUUSD fundamental analysis is the market expectation of an economic indicator. Economic analysts provide prediction of a probable market data or number of the economic indicator to be announced. This has an impact to the XAUUSD Gold market and traders are positioned accordingly to trade XAUUSD currency pair. When the economic report is released it impacts the market only when the report is different from what the market originally expected. That happens because every available economic indicator available to the public info is already taken into account when trading XAUUSD.

Example of XAUUSD News Trading

The best XAUUSD news strategy, is one that is based on the economic news calendar used to time when the news releases are to happen so as to trade these XAUUSD data reports. A XAUUSD trader will keep a schedule of these economic new times and prepare how to trade the data before & after the data is released for the XAUUSD currency pair.

A XAUUSD trader can get the times of when the economic data for XAUUSD currency pair are to be released by observing an economic calendar. The economic news calendar contains the time-table of when news data for XAUUSD are bound to be released. The economic news calendar is compiled by Financial Analysts & Economist who study the fundamental reports and economies of the world. This News Calendar will show the timetable for all the news releases scheduled for the next 30 days for the XAUUSD currency pair.

By having this economic calendar a XAUUSD trader can schedule when to trade these XAUUSD economic data reports well in advance. To obtain a copy of this calendar a trader can search for "FX Calendar" & you'll find a couple of these economic data calendars online hosted on various sites.

An Economic Calendar will usually have 3 values:

  1. Previous Reading

  2. Forecast
  3. Actual News

Previous Reading - This piece of the data shows the previous value/data of a previous news data reports. Most fundamental reports are in the format of numeric numbers or percentages.

Forecast - Forecast shows the value for the news that economic experts predict for that specified data report. This data is forecasted way before the date of the economic data release. Economic and Financial Analysts will put across their forecast.

  • If the forecast number is better than the prior, XAU USD traders will buy the currency associated with the good forecast
  • If the forecast number is worse than the previous, XAU USD traders will sell the currency associated with the bad forecast

Actual News Data Report Announcement

This is what will determine if there will be a big price movement or none at all.

If the actual data release is same to the forecast, then there will not be much movement, this is because XAUUSD traders anticipated this data and have already traded the news even before the actual data was released.

If the actual news release isn't the same as the forecast, this will come as a surprise to the XAUUSD traders, if the forecast and actual data release is not the same then, the XAUUSD traders will have to adjust their trades accordingly and this will cause a price reversal in the direction in the opposite trend of the XAUUSD Currency.

If likewise the actual data reading and value was way better than expected, then the price will continue further towards its direction & gain further momentum towards that direction. Likewise, if the actual news report is worse than predicted price movement will also continue in the same direction as the one of before the news release & this time gain more energy and move further towards that direction.

Example:

When the new info is released then it has effect on the market only if it's different than expected. If the info is as expected then it has no impact in the XAUUSD currency pair because the information is already available to the public and has already been taken in to account.

In order to use fundamental analysis, you should first be able to know the market trading economic indicators. Economic calendar containing all the fundamental economic indicators is created by economists. Economists also use this Economic Calendar to predict different news reports. These predictions are provided by market analysts. This can have a great impact on the market when trading the XAUUSD currency pair. XAUUSD Traders will watch out for news announcements which have a great impact on the financial trading markets.

When are economic news released? - XAUUSD News Strategy

XAUUSD Economic Reports Announcement Times - XAUUSD News Forex - XAUUSD News Forex Strategies

Economic Reports Announcement Times of the major economies and major currency pairs transacted in the market.

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