There are traders who rely exclusively on technical analysis and the Trailingator for all their trading. Their assertion is that all the information out there is in the charts. While there is some truth to that, the Forex market is somewhat different from others. If you just follow technical analysis, you will always be a follower of the action and not a predictor. Technical analysis is especially unreliable when you wish to anticipate market movements.
Analysis of the market fundamentals actually reveals the underlying causes that lead to the gyrations of the Forex Markets. Currencies are affected by a plethora of reasons, from geopolitical to financial and weather related. World economic conditions are always in a flux, and deciphering their impact on currency markets is not easy.
The first step in analyzing the fundamentals of Forex markets is to identify the key players. These are financial institutions, central banks and governments. Fiscal decisions taken by individual states affect the value of their currencies in relation to others. While some of these decisions are taken in an impulsive manner, most are taken at regularly scheduled events that are known well in advance. This helps Straddle Trader Pro traders around the world to get this information as soon as it is released.
Decisions taken at these key events have a direct effect on their currency’s value in comparison to others. Smart traders would be well advised to be abreast of these fundamental factors when making trading decisions.
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