My name is Steve Chen, a fellow member of ACCA and course director at APC (www.globalapc.com) teaching ACCA online courses to students from all around the world. This article will explain the topic ‘How to read FOREX chart’ in ACCA Advanced Financial Management (AFM) exam.
In the past, I often had students who have previously failed the ACCA AFM paper before studying with me. After getting to know more about them in terms of their study, I found that they failed the AFM before studying with me because their previous studies were not practical, ie most of them simply memorise the rule without any links with them practice.
In the P level in ACCA studies (Master level), it is essential to be practical so that you learn things in the study texts, lectures, and exams and directly apply them in the real scenarios.
Therefore, the topic in this article is all about ‘How to read FOREX charts’. You should read my previous two articles about Foreign Exchange Rates quotes before reading this one.
Below is an example of a foreign exchange rate of USD/CHF where USD is the base currency, and the rule is simple, always focus on the base currency.
Increase – USD appreciates against CHF as one US dollar can be converted into more CHF.
Decrease – USD depreciates against CFH as one US dollar can be converted into less CHF.
Another way to simplify the chart is to think about the FOREX quote as the share price, and as you can see, the price falls from July 2020 onwards.
I teach ACCA Financial Management and Advanced Financial Management papers for quite a few years, and one of my ACCA students Martin Valent who studied ACCA AFM with me (join my online course at www.globalapc.com) became the first prize winner in March 2017 ACCA P4 Advanced Financial Management exam in Slovakia. I am passionate about teaching ACCA AFM paper as this paper is quite practical. Students often found things learned in other papers, such as financial and management knowledge, linked with strategic papers such as ACCA SBL.