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 has rebounded from the local correctional retracement of 38.2%, which means that it may resume falling.
The EUR/USD pair has expanded its trading range upwards.
In case of the EUR/USD pair, the flat continues.
The EUR/USD pair is forming the structure of the third descending wave.
After rebounding from the correctional retracement of 78.6% several times, the EUR/USD pair continues its fast decline.
The EUR/USD pair has broken another consolidation range downwards.
After rebounding from the correctional retracement of 78.6% several times, the EUR/USD pair continues moving downwards.
The EUR/USD pair has formed another consolidation range.
After rebounding from the correctional retracement of 78.6% for the second time, the EUR/USD pair resumed moving downwards.
Being influenced by the news, the EUR/USD pair has broken 1.1200 downwards.
The EUR/USD pair is still trading under the correctional retracement of 78.6%.
The EUR/USD pair is correcting the second descending impulse.
The EUR/USD pair is still consolidating below the correctional retracement of 78.6%, which means that it may resume moving downwards.
The EUR/USD pair has formed the first half of the third descending wave.
The EUR/USD pair is moving below the correctional retracement of 78.6% again and may soon reach the retracement of 61.8%.