Forex Fundamental analysis
One of the key factors, which has influence on any trader’s success is his ability to correctly predict the market movements. The two main methods are technical and fundamental analysis of Forex market.
An important feature of fundamental analysis is its global nature. Events, which are analyzed in fundamental analysis, have long-term influence on supply and demand on the currency market. This information is composed of the news about the world’s biggest political and financial events. It’s hard to overestimate the influenced the news has on financial markets: when the most important news is published, the market volatility increases.
It’s quite easy for an experienced trader to analyze and predict how a single event may influence the market. However, analysis of several events, which may influence the market in completely different ways, is a very complicated and time-consuming process. This may be the reason why only approximately 20% of traders use fundamental analysis as their main forecasting tool.
Fundamental approach to Forex market analysis, unlike technical one, covers not only the prices and their changes, but the reasons for these changes as well. Each approach has its followers, advantages and disadvantages.
The AUD/USD pair is "losing weight" on Thursday afternoon, sales in the instrument continues for the third day due to a combination of factors.
The USD/JPY pair is slowly growing on Wednesday afternoon, but a turn in the trend is still far off.
In the middle of the week, the AUD / USD pair retreats under pressure from the macroeconomic data block.
On Tuesday afternoon, the EUR/USD pair is trading downward, as the published statistics are inconsistent.
The GBP/USD pair fell sharply on Monday after the resumption of talks in the referendum in the UK.
The GBP/USD pair is trading with a decrease at the end of the week, although the pound could have found support in the report on retail sales.
On Thursday, the AUD/USD pair is reacting to the statistics and mixed market sentiment.
The GBP/USD pair rose sharply after a block of macroeconomic statistics for the UK, but was not able to keep the momentum.
The main currency pair in the middle of the week is trying to recover after five days of sales.
While the external background sends investors news, the main currency pair prefers not to make any unnecessary movements.
The GBP/USD pair barely moved on Tuesday afternoon, as investors assess the impact of raw news and analyze British statistics.
The USD/JPY pair is gradually restoring positions after a series of February sales.
Two-week sales in the USD/JPY pair led the instrument into the area of the minimums of the last fifteen months.
Despite the drop in German industrial production in November and December, the German economy is still able to show an increase of 0.3% in the fourth quarter.
It looks like Eurodollar is about to complete the diagonal triangle (v) in the ascending impulse [c].