Fundamental analysis is a more comprehensive method of analyzing the Forex market. It looks at political, economic and financial factors that can influence the price of a currency. Fundamental analysis takes into account various economic indicators such as GDP, inflation, employment, money supply, and government policies. It also examines the economic health of the nation whose currency is being traded. By looking at these factors, traders can get an idea of the direction of the currency. Technical analysis, on the other hand, is a more short-term approach that looks at price movements as the main indicator of where the market is headed. It is based on the idea that the price will reflect all available information about a currency, and that price movements can be used to predict future price movements. Technical analysis relies heavily on the use of charts and technical indicators to identify trends in the market.
When deciding which method of analysis to use, it is important to consider the timeframe of your trading and the type of trading you are doing. Fundamental analysis can be used for long-term planning, while technical analysis can be used for short-term trades. Fundamental analysis will provide a longer-term view of the market, while technical analysis can provide more specific, short-term insight.
