Forex Market Analysis

Forex Market Analysis is the key to success in foreign exchange trading. Once you know how to interpret graphs, predict trends and understand the meaning of economic releases, you will be all set. Forex Market Analysis, like analysis of other markets, can be divided into two large categories: fundamental and technical analysis.

Finotec offers its own analysis to customers, written by its in-house team of experts. Each day, our analysts dissect the latest economic news and their impact on the forex market, providing users with forex signals and detailed technical analysis including charting, forex signals and forecasts.

Unlike Technical Analysis which focuses on price, Fundamental Analysis focuses on factors that are susceptible to influence financial markets by affecting supply and demand forces for a particular market. These factors include economic and fiscal policies, economic events and releases (GDP, unemployment rates, etc…) as well as weather, geopolitics and world events. Fundamental Analysis is performed on both current and historical data with the aim of making financial projections.

Forex Technical Analysis, also known as “charting,” is based on the theory that it is possible to predict future price movements based on historical prices. Technical Analysis considers only the actual price behaviour of the forex pair, based on the idea that the price reflects all relevant factors before traders get to know about them otherwise.

While some investors choose to trade based on one or the other, most take both into consideration for they are equally important.