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.
Eurodollar has reached the target at 1.1200 and right now is consolidating
Eurodollar is still dominated by “bears”.
Eurodollar has almost reached the target of the first descending wave.
Eurodollar continues falling; it has successfully reached the targets specified earlier.
Eurodollar continues moving towards its downside targets.
Pound has expanded its consolidation range upwards and completed the correction.
Eurodollar is being corrected, although the main target for bears is still the group of lower fibo-levels at 1.1210.
Pound is being corrected; the pair has expanded its trading range upwards.
After reaching its intermediate targets, Eurodollar started a local correction.
Eurodollar has completed the third structure of the descending wave.
Eurodollar has broken its low and continues falling.
Eurodollar is moving close to 1.1390.
Quite soon, the market may reach the closest group of fibo-levels at 1.1310.
Eurodollar is expanding the consolidation channel upwards.
Europound has rebounded from the retracement of 38.2% twice, which means that it may resume moving upwards.