WHAT MOVES THE CURRENCY MARKET IN THE LONG TERM?
WHAT MOVES THE CURRENCY MARKET IN THE LONG TERM? There are two major ways to analyze financial markets: fundamental analysis and technical analysis. Fundamental analysis is based on un derlying economic conditions, while technical analysis uses historical prices in an effort to predict future movements. Ever since technical analysis first surfaced, there has been an ongoing debate as to which methodology is more successful. Short-term traders prefer to use technical analysis, focusing their strategies primarily on price action, while medium term traders tend to use fundamental analysis to determine a currency’s proper valuation, as well as its probable future valuation. Before implementing successful trading strategies, it is important to understand what drives the movements of currencies in the foreign ex change market. The best strategies tend to be the ones that combine both fundamental and technical analysis. Too often perfect technical formations