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 is forming the first descending impulse.
The EUR/USD pair hasn’t been able to stay above the correctional retracement of 78.6% and rebounded from it.
The EUR/USD pair has corrected the previous ascending impulse.
After rebounding from the correctional retracement of 78.6%, the EUR/USD pair is trying to resume falling.
The EUR/USD pair has reached its upside target.
The EUR/USD pair hasn’t been able to break the correctional retracement of 78.6% after all, which means that it may resume falling.
Europound is still moving close to the correctional retracement of 78.6%.
The GBP/USD pair is moving inside the fifth wave of the downtrend.
Earlier, the pair rebounded from the correctional retracement of 61.8% and started falling.
The EUR/USD pair is still forming its consolidation range, which is taking the form of the triangle.
After rebounding from the retracement of 61.8% earlier, Eurodollar has started falling.
The EUR/USD pair is moving in the center of the descending structure.
The EUR/USD pair is forming another consolidation range below 1.1155.
Europound has resumed its growth and right now is again moving near the correctional retracement of 61.8%.
The EUR/USD pair has broken both the border of the channel and the low of the consolidation range, and formed a downside continuation pattern.