What is Fundamental Analysis of FOREX Market?

Currency price changes, commodities, metals are all related to events that can affect certain countries, and thus affect the world. This event can be an economic or political change, as well as natural disasters. This event is reviewed when conducting a fundamental analysis. Historically, the relationship between change in key company management, national leadership, and a change in the volume of production, with volatility involving currency pairs and other assets can be tracked by analyzing.

Fundamental analysis of fundamentals Traders are more interested in the possibility of profit by predicting the direction of price chart movement from the start or end of a given event. The analysis also involves history, allowing you to evaluate fluctuations when the news is published, a direction of trend movements, from reading announcements either larger or smaller than forecasts.

The fundamental principles of fundamental analysis in the market-
• Prices will not change on their own - always for some reason
• The influence of diversity factors on predictable price movements
• Execution of the dynamic calculation of the economic/political factors allows careful prediction of future price movements to be carried out more accurately
• Force-majeure affects price fluctuations but is unexpected

Fundamental analysis in the Forex market can be either alone or related to technical analysis. Thus, forecasts for subsequent price movements that do not become can cause premature closure of positions. Some people argue that news releases can sometimes violate the principles of technical analysis, and as a result, when conducting trades based on the technical analysis it should be stopped, or restarted, after the rhythm of fluctuations, as usual.