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.
At the H4 chart of EUR USD, Tower and Engulfing Bearish patterns indicated a descending movement.
On Friday afternoon, the USD/JPY pair is trading with an increase in the anticipation of the Bank of Japan to mitigate the monetary conditions.
The AUD is winning back Monday losses for the second day in a row and seems ready to test the August highs.
The EUR/USD pair is trading with a downturn on Thursday afternoon after the sharp comments from the ECB.
Strengthening in the European currency continues despite weak statistics from the Eurozone.
The AUD/USD pair declines on Tuesday, the medium-term rising channel in the instrument is at risk of breaking.
The GBP/USD pair is trading with a downturn on Tuesday after the inflation report from the Bank of England.
Eurodollar is still forming the ascending correction.
The EUR/USD pair is trading upward on a quiet news background and the lack of statistics.
The GBP/USD pair has suspended its rise after three days of steady strengthening in the trade balance data of Great Britain.
The EUR/USD pair on Thursday afternoon is trading on the upside, as investors are taking long term positions.
The GBP/USD pair is recovering and is moving further away from the local minimum - today, the pound is being pushed up by the statistics.
The GBP/USD pair is attempting to recover from yesterday’s fall, although the statistics are clearly not on the side of the pound.
The AUD / USD pair continues to move up, playing on statistics and a calm news background while China's market is closed.
On Monday, the main currency pair gained half a percentage point in response to fairly good statistics.