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

AUD/USD extends post RBA losses to 0.6950, teases weekly bullish channel breakdown

AUD/USD extends post RBA losses to 0.6950, teases weekly bullish channel breakdown

AUD/USD bears ignore the Reserve Bank of Australia’s (RBA) Interest Rate Decision while extending pullback from the monthly high ahead of Tuesday’s European session. That said, the Aussie pair takes offers to refresh daily low near 0.6950 by the press time.

AUD/USD News

Gold bulls keep their sight on $1,786 amid Taiwan tensions

Gold bulls keep their sight on $1,786 amid Taiwan tensions

Gold price eases but upside remains favored amid escalating US-China tensions. The expected visit of US’ Pelosi to Taipei rattles markets amid China warnings. Gold bulls remain on track to test the critical resistance area at $1,786.

Gold News

LATEST ANALYSIS

More Latest Analysis

Subscribe to Premium and chat here with our top experts

CLICK & GET 35% off on the yearly plan

Sponsor broker


Broker promotions







DEEPER DIVE

Microsoft: Price target at $230 with near-term risks due to strong US dollar

Microsoft: Price target at $230 with near-term risks due to strong US dollar

As with most stocks, the Wall Street analyst community remains staunchly optimistic with an average price target of $354.25.

Facebook parent price target at $200 despite macro headwinds

Facebook parent price target at $200 despite macro headwinds

We continue our deep dive series with a focus on Facebook parent Meta Platforms. We will focus as ever on traditional DCF cash flow analysis as well as a relative valuation model to forecast a 12-month price target.

Central Bankers' Panel puts Powell, dollar on top, Lagarde, euro lagging, Bailey, pound behind Premium

Central Bankers' Panel puts Powell, dollar on top, Lagarde, euro lagging, Bailey, pound behind

Football fans will have to wait until the winter to see the World Cup – but forex traders have their dream team playing in a panel already now.

CRYPTOCURRENCIES

More Bitcoin Analysis

STOCKS

Pinterest Earnings: PINS stock spikes 18% after decent Q2 results

Pinterest Earnings: PINS stock spikes 18% after decent Q2 results

Pinterest stock soared 18.6% to $23.70 afterhours on Monday after posting second quarter results that were close enough to Wall Street projections and also featured third quarter guidance that excited investors. For the most part the quarter was not seen as a failure, so the stock rallied on a decent quarter where advertising revenue did not fall apart a la Snap.

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

More Crosses Analysis

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.