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.
It looks like Eurodollar is about to resume its decline.
Eurodollar is attempting to form a correction towards 1.1200 to test it from below.
Eurodollar continues falling; the price has reached the target area at 1.1130.
Eurodollar has broken its consolidation channel downwards and right now is falling to reach the target at 1.1100.
Eurodollar is consolidating near its lows.
Eurodollar is still consolidating.
Eurodollar has completed the descending wave and right now is forming a new ascending impulse.
Eurodollar is being corrected; the bearish tendency continues.
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.