So what fundamental analysis and technical analysis in Forex Trading?

Technical Analysis is classified looking at the charts, while Fundamental Analysis is looking at the facts, figures, company outlook growth etc.

The questions is can fundamental Analysis used along with technical analysis in Forex trading? It is a good question because many may argue that a country may not have an inherent value.

It is not a complicated answer. Fundamental analysis within a nation is a case of finding where about in the business cycle the economy is at any particular time with the affect it has on the value of the currency. There are many pointers that can indicate where the economy is. Within the normal cycle of inflation and deflation the pointers that you can look for are things such as current interest rates and the Gross National Product.

There are many equations that affect the value of currencies and all in different ways every pointer affects each countries currency differently.

For example in Australia, currency dropping is normally associated with interest rates that are on the up. So fundamental analysis can affect what happens with the technical analysis.

Technical analysis in Forex trading is considered to be the opposite of fundamental analysis. It tries to predict the future of the Forex market movement by looking at previous data and uses this along with current tendencies as indicators as to what is going to unfold. Technical analysis doesn't use the inherent worth of the investment.

Foreign exchange market is rather suited to technical analysis because it is easy to look back at the previous statistics of the currency pairs. This is by far the best way of predicting the future Forex market. Modern economies are so very complicated nowadays that many say it is almost impossible to predict the future of the Forex markets without the help of past technical data.


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