WHAT MOVES THE CURRENCY MARKET IN THE LONG TERM?
WHAT MOVES THE CURRENCY MARKET IN THE LONG TERM? TECHNICAL ANALYSIS _____________________________________________________________ Prior to the mid-1980s, the FX market was primarily dominated by funda mental traders. However, with the rising popularity of technical analysis and the advent of new technologies, the influence of technical trading on the FX market has increased significantly. The availability of high lever age has led to an increased number of momentum or model funds, which have become important participants in the FX market with the ability to influence currency prices. Technical analysis focuses on the study of price movements. Techni cal analysts use historical currency data to forecast the direction of future prices. The premise of technical analysis is that all current market informa tion is already reflected in the price of each currency; therefore, studying price action is all that is required to make informed trading decisions. In add