Posts

Showing posts with the label fundamental-analysis-framework

WHAT MOVES THE CURRENCY MARKET IN THE LONG TERM?

Image
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