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.
Being influenced by the news, Eurodollar has started a correction.
Europound has started an ascending correction as well.
Considering that Europound has rebounded from the retracement of 61.8%, the downtrend is expected to resume.
Australian Dollar is forming the first descending impulse with the target at 0.7277.
After rebounding from the retracement of 38.2%, Eurodollar is making another attempt to resume falling.
Yen is still consolidating around 123.00.
Eurodollar is being corrected.
Eurodollar is making another attempt to form a correction towards 1.0610.
Eurodollar is still moving inside a very narrow trading range close to its lows.
At the end of the last week, the price rebounded from the local retracements of 61.8%.
After rebounding from the retracement of 61.8%, Eurodollar has resumed its decline.
It looks like the pair continues forming the extension in the wave 3.
Eurodollar is moving inside a very narrow trading range without any particular direction.
Yesterday, Eurodollar rebounded from the retracement of 61.8% and reached a new low.
Pound is being corrected towards 1.5149 to test it from below.