Analyzing the Forex Market

Market analysis is crucial for successful forex trading. There are two main types of analysis: fundamental and technical.

Fundamental Analysis

This involves evaluating economic indicators, news events, and geopolitical factors that can influence currency values. Traders often look at interest rates, inflation, and employment data.

Technical Analysis

Technical analysis focuses on price charts and indicators to predict future price movements. Traders use tools like moving averages, RSI, and Fibonacci retracements to make informed decisions.