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.
The EUR/USD pair continues moving downwards.
The EUR/USD pair has broken its ascending channel and right now is forming another descending wave.
The EUR/GBP pair is still consolidating.
Being influenced by the news, the EUR/USD pair has broken 1.1100 upwards.
The EUR/USD pair is still being corrected.
The EUR/USD pair has broken 1.1065 downwards and right now is consolidating.
The EUR/USD pair couldn’t fix above the correctional retracement of 61.8% after all and started moving downwards.
Being under pressure, the EUR/USD pair is falling.
The EUR/USD pair has completed the descending impulse and the correction.
At the H4 chart, the EUR/USD pair is still consolidating.
Just as we expected earlier, the EUR/USD pair faced resistance from the correctional retracement of 61.8% and rebounded from it.
The EUR/USD pair is still growing; this structure may be considered as a correction.
The EUR/USD pair broke the correctional retracements of 38.2% and 50% easily.
The GBP/USD pair is still consolidating.
The EUR/GBP pair has almost reached the upside target area, which provided resistance earlier.