ECON5007 The Economics of Financial Markets Role-Playing Game 3 - Technical Analysis analysis of a forex currency pair
Game background:
Congratulations on successfully completing the previous game! Your proficiency in fundamental analysis has impressed me, and I've shared your report with our esteemed clients. However, they've expressed the need for a holistic approach to trading, encompassing not just fundamental analysis but also technical analysis. In this challenge, you'll delve into the world of technical analysis - a method for evaluating and forecasting future price movements of currency pairs based on historical data, volume, and market-related information. It relies on historical price patterns and statistical probabilities, aiming to extract insights into future price trends, thereby empowering traders to make informed decisions.
Game Clearance Requirements: To succeed inthis game and achieve a full score,you must:
1. Select a Currency Pair: Choose a currency pairthat you wish to analyze.
2.Apply Technical Techniques: ldentify and mark
signifcant support and resistance levels on yourprice chart.Additionally, select and utilize technicalindicators for your chosen forex pair. These
indicators may encompass moving averages,RSI,MACD, Bollinger Bands, or any other indicatorsfrom your technical analysis studies.
3. Conclusion Crafting: Synthesize your research
and analysis to create insightful conclusions
regarding the potential trajectory of the currencypair. Evaluate whether the currency is poised toappreciate or depreciate in comparison to itscounterpart.
4One-page Report: The report can use charts,
tables, calculations, screenshots, or references (citesources) for explanation purposes.The report mustbe professionally presented within one page. Noadditional specifcations are needed for font type, size, spacing, or citation styles.