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General What causes currency crashes?

mhmo2005

New Member
The forex market cannot collapse overnight, even though some currencies may individually experience sharp declines from time to time, let's take a look at the most prominent cases of collapse that the currency markets have experienced in the past years. We would like to remind you first that there are two main types of price collapses, the first is the long-term declines, and the other is the intraday declines. Long-term declines usually last for months, possibly years, while intraday crashes occur within seconds and usually last no more than an hour. Irrespective of the nature of the price crash, the investors of the respective currency incur huge losses which may sometimes lead to the wiping out of their entire accounts.
 
Long-term collapses are caused by important fundamental data and events. Therefore, when trading long-term, it is necessary to pay attention to the fundamental analysis of the market. And if we talk about short-term price drops within a day, then this is a normal state of the market, when at some point there is an advantage of sellers over buyers. That is, there will always be a price rollback, after which the price will continue to go along the trend.
 

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