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.

Australian Dollar recovers intraday losses after Retail Sales, US Dollar remains stable

Australian Dollar recovers intraday losses after Retail Sales, US Dollar remains stable

The Australian Dollar (AUD) retraces its recent losses following the release of Australia’s Retail Sales data on Thursday. However, recent Gross Domestic Product (GDP) data from the United States (US) has led financial markets to delay expectations for the Federal Reserve’s (Fed) first rate cut. This has provided some support for the US Dollar (USD), thereby weakening the AUD/USD pair.

Topics in Depth

USD/JPY extends sell-off below 150.00 on BoJ Takata's hawkish signals

USD/JPY extends sell-off below 150.00 on BoJ Takata's hawkish signals

USD/JPY is extending losses below 150.00 after coming under intense selling pressure on hawkish comments from BoJ policymaker Takata. Takata hinted at a likely policy pivot, sending the Japanese Yen higher across the board. US PCE inflation data is next on tap. 

USD/JPY News

Gold rises as US Treasury yields fall before key US inflation report

Gold rises as US Treasury yields fall before key US inflation report

Gold price remains steady near $2,030 on Wednesday, posting a gain of 0.17% after the US Bureau of Economic Analysis (BEA) revealed the country's economy expanded. A drop in US Treasury bond yields has kept the yellow metal near the current month and weekly highs, capped by the 50-day Simple Moving Average (SMA).

Gold News

LATEST ANALYSIS

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EUR/USD: Tepid recovery does not grant an interim bottom Premium

EUR/USD: Tepid recovery does not grant an interim bottom

GBP/USD: Pound Sterling rebounds, snapping five straight weeks of weak momentum Premium

GBP/USD: Pound Sterling rebounds, snapping five straight weeks of weak momentum

Gold Weekly Forecast: XAU/USD needs to stabilize above $2,030 to attract buyers Premium

Gold Weekly Forecast: XAU/USD needs to stabilize above $2,030 to attract buyers

US Dollar: Attention now shifts to the 200-day SMA Premium

US Dollar: Attention now shifts to the 200-day SMA

DEEPER DIVE

Do elections affect economic activity?

Do elections affect economic activity?

We wrote reports in 2016 and again in 2019 to determine if election periods had a significant impact on U.S. economic activity. With the 2024 presidential election right around the corner, we revisit that analysis.

Eurozone – Still caught between stagnation, transition and geopolitics

Eurozone – Still caught between stagnation, transition and geopolitics

The eurozone as a whole is still struggling to break free from sluggish growth. And with numerous elections this year, efficient decision-making is becoming increasingly difficult. 

Addressing the public debt challenge in the EU

Addressing the public debt challenge in the EU

Recently an agreement has been reached between representatives of the European Council, the European Parliament, and the European Commission on a new economic governance framework.

CRYPTOCURRENCIES

More Bitcoin Analysis

STOCKS

MARA advances 4%, reaches new two-year high on Bitcoin rally

MARA advances 4%, reaches new two-year high on Bitcoin rally

Marathon Digital stock rode the Bitcoin price wave on Tuesday. MARA shot up more than 12% at Tuesday’s open, while Bitcoin advanced a solid 7% to $57,100 — its highest level since December of 2021 — before retracting to $56,800.

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.