Page 23 - WHAT IS FOREX (2)_Neat

23

1. Fundamental Analysis

This focuses on economic and political factors that move

currencies-such as interest rates, inflation, GDP, employment

data, and central bank news.

Example:

If the U.S. The Federal Reserve raises interest rates, the USD
might get stronger.So, fundamentals tell why the market moves.

2. Technical Analysis (Charts)

This focuses on price movements, patterns, and indicators on the
chart.It helps traders decide when to enter or exit a trade.

Tools include:

● Support and resistance levels

● Trend lines
● Moving averages

● Candlestick patterns
● RSI, MACD, Fibonacci, etc.

Elite traders combine both analyses for more accurate decisions.