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 rebounding from the group of upper fibo-levels, Eurodollar has started a descending correction.
Yesterday, Eurodollar rebounded from the group of upper fibo-levels and started a descending correction.
Eurodollar has finished another descending structure to expand its consolidation channel downwards.
Eurodollar is moving near the group of upper fibo-level close to the retracement of 50%.
Eurodollar is expanding its consolidation channel upwards.
At the end of the last week, Eurodollar once again rebounded from the correction retracement of 50% and the group of confirming fibo-levels.
Eurodollar is consolidating at the top of its ascending wave; the pair as reached its upside targets and this consolidation channel may be considered as a part of a reversal structure.
As we can see at the H1 chart, the price has broken Moving Average (period 34), which provided support earlier, and it means that the market may resume its descending movement.
Eurodollar is forming the descending impulse with the target at 1.0907.
Eurodollar has rebounded from the group of fibo-levels near the retracement of 50%.
Pound has formed the fifth wave of its ascending structure.
In case of Europound, the situation is quite similar.
Eurodollar has returned to 1.0880 and right now is trying to form an upside continuation pattern near it.
In case of Eurodollar, the correction continues.
In case of Eurodollar, the local correction continues.