Supply and demand for any given currency, and thus its value, are not influenced by any single element, but rather by several. These elements generally fall into three categories: economic factors, political conditions and market psychology.

Trading Platforms, for example, hedges its exposure in this fashion, in accordance with its risk management policy and legal requirements.

The other technique is called the double crossover, which uses shortterm and long-term averages. Typically, upward momentum is confirmed when a short-term average (e.g., 15-day) crosses above a longer-term average (e.g., 50-day).