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 tumbles back to 1.08 region, investors turn to US GDP and PCE inflation

EUR/USD tumbles back to 1.08 region, investors turn to US GDP and PCE inflation

EUR/USD pulled back sharply on Wednesday, falling back to the 1.0800 handle after broad risk appetite evaporated. The pair is trading firmly into technical resistance as investors gear up for a batch of mid-tier European economic indicators on Thursday, followed by an update to US quarterly GDP growth.

EUR/USD News

Gold slumps amid strong US Dollar, high US Treasury yields

Gold slumps amid strong US Dollar, high US Treasury yields

Gold prices slump on Wednesday amid rising US Treasury yields, boosting demand for the Greenback due to hawkish comments by a Federal Reserve official. Consequently, sentiment shifted sour, the US Dollar climbed, and the XAU/USD is trading at $2,339.

Gold News

Latest Analysis

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DEEPER DIVE

Like there’s no tomorrow: Unpacking consumer credit

Like there’s no tomorrow: Unpacking consumer credit

The recent run-up in revolving debt combined with the much higher financing costs raises doubts about the ability of credit to continue to make up for the shortfall between modest real income growth and aspirational spending.

Inventories are quiet, a little too quiet

Inventories are quiet, a little too quiet

The economy is in the midst of an unusually calm stretch with respect to inventory investment. It is like the point in the scary movie when someone points out that all the forest creatures have gotten quiet.

Softer growth, cooler inflation and rate cuts remain on the horizon

Softer growth, cooler inflation and rate cuts remain on the horizon

Economic growth in the United States appears to be in solid shape. Although real GDP growth came in well below consensus expectations and amounted to just 1.6% annualized in Q1-2024.

CRYPTOCURRENCIES

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STOCKS

UK stock market watch

UK stock market watch

This is an interesting week to trade UK equities. The election campaign is in full swing ahead of the July 4th vote, and both parties are laying out their plans for the economy, which could have implications for UK asset prices.

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 Ellio 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

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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.