Forex is a global financial market where traders around the world buy and sell currencies. Forex trading involves currency exchange rates between different countries. There are five major forex markets including the US Dollar (USD), Euro (EUR), British Pound (GBP), Japanese Yen (JPY) and Swiss Franc (CHF). These currencies are traded 24 hours a day.
The forex market is highly volatile and unpredictable. Traders use technical analysis to predict future trends in the price of currencies. Technical analysts study charts and graphs to identify patterns and predict future movements in the prices of currencies. Technical analysts look at things like supply and demand, interest rate changes, economic news, political events, and many other factors.
Technical analysis is based on the assumption that past performance does not guarantee future results. In addition, technical analysis assumes that the market moves in a straight line. However, the forex market is extremely complex and unpredictable. Therefore, technical analysis cannot always accurately predict future trends.
There are three types of fundamental analysis: macroeconomic fundamentals, microeconomic fundamentals, and industry fundamentals. Macroeconomic fundamentals involve government policies, interest rates, inflation, unemployment, GDP, trade balance, and budget deficits. Microeconomic fundamentals involve production, consumption, investment, savings, credit, money supply, and interest rates. Industry fundamentals involve competition, technology, innovation, and demographics.