Milton Nichols

Can Forex Charts Help When Making An International Money Transfer?



Posted: Sunday, December 12, 2010

by Milton Nichols
Currency Solutions

The global electronic world changed the way we do routine things like paying our bills, withdrawing money, repaying our mortgage or conducting an international money transfer. Although our bank or other service providers take care of the technical side of all these transactions and calculate all amounts due, some more advanced customers still insist to participate actively in the process of calculating the costs and worth of their financial transactions. Reading Forex charts in preparation for a international money transfer is not the usual practice but you can utilise this tool to familiarise with the historical development of a particular currency pair and to get an idea how your home or base currency is performing at present. Thus potentially exchanging and transfering your money when the exchange rate is at an optimal level.

All Forex traders use three basic types of charts performing their everyday job. These are bar charts, line charts and candlestick charts, and each of them could be a variation of the basic chart. Actually, an average user needs to familiarise only with the line chart, which depicts daily closing prices of a currency pair and is easy to read and understand. Such a chart gives a correct idea how the value of a currency has developed during a specific period of time and is useful in picking the right moment for conducting your international money transfer. You cannot substitute a chart for the professional services of a Forex expert specialising in currency trading and transfers but can familiarise with the historical development of the currencies involved in your transfer.

Many websites offer a possibility to draw a Forex chart, some of them for longer periods of time, say, five or more years. Although most of these websites provide accurate information and even free forecasting tools, always bear in mind that it takes years to become a Forex professional so do not try to forecast currency exchange rates unaided unless you have a solid understanding of this sophisticated market.

Reading a line chart and seeing a steep rising curve, representing the value of the British pound against the euro, for example, means that there is a good chance that this trend will last for a while. Hence, if you plan to make an international money transfer, denominated in pounds, to a European country it would be a good time to conduct the transfer. On the other hand, you should be aware that the Forex market is characterised by volatility and the rates change in minutes; therefore, consult your international money transfer advisor first.

Reading a line chart is relatively easy and you may be tempted to undertake a single-handed currency exchange transaction. Usually, this leads to stress and poor judgement, if you are an average customer who is not familiar with the fine points of the currency trading. Let the professionals do the work and use Forex charts only as an additional source of information assisting you in the calculation of the overall value of your transfer.

Dr Timothy Ross is an expert on the financial markets. Recommendation: If you need to make a large or regular overseas payment consider the help of a money transfer specialist as an alternative to your bank.
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