Forex Analysis


Forex analysis is how traders assess the next moves a currency pair is about to take, providing insights for taking a position. For this reason it is an essential tool for traders to make the best decisions in their daily trading routine, based on the fundamental and technical aspects of an asset. Fundamental analysis is based on the countries' economic situation, future prospects, and primarily what central banks plan to do with interest rates. Technical analysis focuses on previous price action, the repeat of well-known chart patterns, and other factors.

Topics in Depth

EUR/USD stays below 1.0900 as Q1 comes to an end

EUR/USD stays below 1.0900 as Q1 comes to an end

EUR/USD has lost its traction and declined below 1.0900 in the American session on Friday. Quarter-end flows seem to be allowing the US Dollar find some demand but the risk-positive market environment seems to be limiting the pair's downside ahead of the weekend.

EUR/USD News

Gold tries to stabilize near $1,980 following earlier spike

Gold tries to stabilize near $1,980 following earlier spike

Gold price has returned to the $1,980 area following a spike above $1,987 with the initial reaction to lower-than-expected PCE inflation figures from the US. Meanwhile, the benchmark 10-year US Treasury bond yield stays in the red near 3.5%, providing support to XAU/USD.

Gold News

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EUR/USD: Calm before the next storm, Nonfarm Payrolls in the docket Premium

EUR/USD: Calm before the next storm, Nonfarm Payrolls in the docket

GBP/USD: Bulls keep an eye on 1.2600 and US Nonfarm Payrolls Premium

GBP/USD: Bulls keep an eye on 1.2600 and US Nonfarm Payrolls

Gold: XAU/USD could break out of range on NFP Premium

Gold: XAU/USD could break out of range on NFP

FX next week: USD/JPY, USD/PLN, EUR, DXY, GBP

FX next week: USD/JPY, USD/PLN, EUR, DXY, GBP

DEEPER DIVE

Fixing banks, it’s not that complicated

Fixing banks, it’s not that complicated

When you’re in a hole, stop digging. It’s frustrating to see policy makers make the same mistakes as in 2008. There are real solutions on the table. They are not that complicated. Yet, as in 2008, we are barking up the wrong trees. 

Gold records best month in three years – But will the rally continue?

Gold records best month in three years – But will the rally continue?

The precious metal has been on an unstoppable run, rallying from the $1,800 level at the beginning of March to above $2,000 an ounce – not once, twice but three times this month – notching up an impressive gain of over 10%, its biggest monthly gain on record.

Is the banking crisis over, or is the worst yet to come?

Is the banking crisis over, or is the worst yet to come?

Few anticipated that the banking sector would get caught up in the crossfire of the Fed’s battle against high inflation. After all, banks traditionally perform better in higher interest rate environments as their profit margins improve.

CRYPTOCURRENCIES

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STOCKS

EVGO adds another 2% following 22% earnings surge

EVGO adds another 2% following 22% earnings surge

EVgo (EVGO) stock has added another 1.9% in Friday's premarket one day after surging 22% on the back of a major quarterly sales beat. The stock is trading up to $7.20 a share at the time of writing, and it appears bulls have their sights set on the $7.50 resistance level.

FX in Depth

cycle analysis

"A cycle is a recognizable price pattern or movement that occurs with regularity in a specific time period"

sentiment agregator

"Advisory Opinion, comprised of arguments and trade ideas which have been committed to publication and therefore have an influence on the trading public, are considered a sentiment indicator."

INTRO TO ELLIOT WAVE

"Have you ever read news updates mentioning Elliott Wave yet you don’t have a clue what these mean for the Forex?"

support and resistance

"Support and Resistance Lines conform the most basic analytical tools and are commonly used as visual markers to trace levels where the price..."



Currencies

Majors

More Major Currencies Analysis

Crosses

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Education


What are the types of Forex Analysis?

There are innumerable ways to analyze the Forex market, but its goal is the same: trying to predict where the price is headed next. The most popular types of forex analysis are:

  • Technical analysis
  • Fundamental analysis
  • Sentiment analysis

What indicator is best for Forex?

There are several indicators key to trade the forex market, and all of them are a great tool for the trader to forecast where the price can go next.

There are indicators of sentiment, trend, volume, etc. Their value will depend on the strategy the trader is trying to follow and its risk management rules.

How do you analyze trends in Forex?

Detecting directional movements is critical. At the end, an FX trader needs to determine and anticipate such a move, or trend, to make profits.

There are multiple tools that can be used to achieve the goal, such as trend lines, supports, resistances, technical indicators, and even pure observation of the price behaviour on the forex chart.

It’s important to take into account that fundamental analysis is as important as the technical one. Using both the trader could better forecast the trend to maximize the benefits and limit the losses trading Forex.

How do I create a Forex Strategy?

The best strategy for one person could be the worst one for others. There are several questions that need to be answered ahead of defining it. How many hours can I dedicate to FX? What is my risk tolerance? These among the most relevant questions.

A forex strategy is a combination of tools that should result in a positive balance in a certain period of time. During the creation of a strategy, flexibility and imagination are very important values. Once the strategy is created, discipline is one of the greatest virtues.

How can beginners start trading forex?

Every learning process is evolutionary and requires the right steps to be followed in order to obtain knowledge and develop skills.

For new traders, it is advisable to work with simple but very powerful tools, such as trend lines, support and resistance or Japanese candlesticks.

It is advisable to start working on simple patterns, such as triangular figures, rectangles or reversal patterns. These types of layouts are easier to manage and the novice trader will learn to manage positions without large ranges that increase risks.

Educate yourself. Knowing the tools, and learning to use it is critical. As in any other professional career, learning before practicing is the key to success. Recognizing strengths and weaknesses is also a critical part of this process.

How do I get a forex signal?

There are multiple providers of forex signals send traders positions that are ready to be traded out of box. FXStreet has its own signals service with experts at different markets. In the FXS Signals service, you will have access to multiple trading signals, both algorithmic and executed by our team of expert analysts. Automated strategies are presented in a transparent manner and the technical fundamentals on which the strategy is built are provided. Manual strategies executed by FXS experts are always explained with a didactic objective. Tthat allows the user of the FXS service to not only execute the trade with understanding, but also to make their own decisions in the future.