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.
After all, Eurodollar was stopped by the group of local retracements, from which it rebounded yesterday.
Eurodollar is consolidating at the top of its ascending wave.
Eurodollar has started a fast ascending movement.
Being influenced by the news, Eurodollar has strengthened its positions; the pair continues growing.
After rebounding from the group of local retracements at 1.1180, Eurodollar has started another decline, which may continue during the day.
Eurodollar is consolidating around 1.1090.
Europound has resumed moving upwards.
After rebounding from 1.1110, Eurodollar continues forming its descending wave with the target at 1.1035.
The pair’s fast ascending movement was stopped by the group of local retracements at 1.1180.
Eurodollar has completed the descending wave and corrected it.
Yesterday the pair made a very fast ascending movement, but was stopped by the group of local retracements at 1.1180.
Franc expanded its trading range upwards and then, being influenced by the news, expanded the range downwards as well.
After rebounding from the local correctional retracement of 38.2%, Europound has resumed its decline.
Eurodollar is forming another descending impulse.
After rebounding from the group of fibo-levels at 1.1030 for the second time, Eurodollar has started a local descending correction.