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 minimum target of the correction and right now is consolidating at the top of the ascending wave.
Yen is moving inside its narrow consolidation channel at the top of the ascending structure.
Eurodollar is moving near the group of fibo-levels at 1.0800 and trying to rebounds from this area.
Yesterday Eurodollar reached its downside target at 1.0810 – 1.0790 and then rebounded upwards, which means that it may try to test this area again.
Eurodollar is moving downwards.
After rebounding from the retracement of 38.2% twice, Eurodollar has resumed falling.
Eurodollar is consolidating
Eurodollar has rebounded from the retracement of 38.2% for the second time, which means that it may fall a little bit.
Eurodollar is trying to form an ascending structure to expand its consolidation channel upwards.
In case of Europound, the correction continues.
Eurodollar has broken its consolidation channel downwards and right now is falling to reach 1.0840.
Europound continues its fast ascending movement.
Eurodollar is forming another descending structure.
Eurodollar is forming another descending structure with the target at 1.0800.
The local correction may yet continue at the H4 chart.