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

GBP/USD struggles near 1.2600 as USD rebounds

GBP/USD struggles near 1.2600 as USD rebounds

GBP/USD is holding lower ground near 1.2600 in the European session on Wednesday. The pair takes a hit due to a resurgent US Dollar demand across the board, as risk sentiment turns sour. The focus now shifts to the Fed Minutes, BoE- and Fed-speak.


Gold price bulls turn cautious near 50-day SMA, one-week top ahead of FOMC minutes

Gold price bulls turn cautious near 50-day SMA, one-week top ahead of FOMC minutes

Gold price (XAU/USD) touches over a one-week high on Wednesday, albeit struggles to build on the momentum and remains capped near the 50-day Simple Moving Average (SMA) through the early European session.

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EUR/USD: Bears encouraged by price pressure heating up Premium

EUR/USD: Bears encouraged by price pressure heating up

GBP/USD: Pound Sterling could stage a comeback but will it last? Premium

GBP/USD: Pound Sterling could stage a comeback but will it last?

Gold: Sellers could be encouraged in case $2,000 holds as resistance Premium

Gold: Sellers could be encouraged in case $2,000 holds as resistance

US Dollar: The year-to-date rally appears unchanged Premium

US Dollar: The year-to-date rally appears unchanged


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.

Global central banks focus in 2024

Global central banks focus in 2024

The central banks and market participants will now shift their attention from inflation pressures, pivoting to the timing and magnitude of interest rate cuts in 2024, as global economies are in various stages of a slowdown.

2024 international economic outlook

2024 international economic outlook

Growth prospects are to be restrained by a U.S. economy likely to experience a mild recession in mid-2024, recessions in the Eurozone and U.K., as well as a Chinese economy that is decelerating amid structural challenges.


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Walmart Earnings Preview: Vizio acquisition in focus ahead of results

Walmart Earnings Preview: Vizio acquisition in focus ahead of results

Walmart kicks off earnings this week following the Presidents’ Day market holiday on Monday. The largest retailer releases its results for the fourth quarter in Tuesday’s premarket and ahead of Nvidia's release scheduled for Wednesday.

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."


"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..."



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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.