Forex Technical analysis and forecasts
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.
Being influenced by the FOMC’s comments, the EUR/USD pair has broken 1.1000 upwards and right now is growing towards 1.1111.
After rebounding from the correctional retracement of 50%, Eurodollar has resumed its decline.
The GBP/USD pair is consolidating above 1.3090.
Europound hasn’t been able to fix above the correctional retracement of 38.2%.
The EUR/USD pair is moving to test 1.1011 from below.
Europound has already rebounded from the correctional retracement of 38.2% several times, which means that it may resume its descending correction.
On 4 hour chart of Euro to US Dollar, bearish trend is kept, Harami model points on upward direction.
After pullback from fibo-level 50% Euro to US Dollar is descending again. It is quite likely that in the beginning of the next week market will test lower targets near 1.0810.
Currency pair Euro to US Dollar upgraded low and performed impulse of correction.
Euro to US Dollar after pullback from correction mark 50% keeps to descend.
Bearish trend is on 4 hour chart of Euro-US Dollar, Hammer and Inverted Hammer models pointed on upward direction.
Currency pair Euro to US Dollar broadened consolidated diapason to the top and is traded in correction to level 1.
Currency pair Euro-US Dollar tested next target of descending matrix. Today market is traded in narrow consolidated diapason on lows of this matrix.
Pullback from correction mark 50% resulted in new coil of Euro-US Dollar descending.
Bearish trend is on 4 hour chart of Euro-US Dollar, middle Window resisted, Engulfing model pointed on downward direction.