Comprehensive Forex Analysis Key Indicators and Techniques

Fundamental analysis involves studying economic, social, and political factors that influence currency values. This includes monitoring interest rates, inflation, GDP, and unemployment reports. Traders use it to predict long-term currency trends.

Technical analysis focuses on price charts, historical data, and patterns, while fundamental analysis relies on external economic events. Most traders combine both for better insights.

Key indicators include moving averages, RSI (Relative Strength Index), MACD (Moving Average Convergence Divergence), Bollinger Bands, and Fibonacci retracements. Each helps identify trends, reversals, or price movements.

Use trendlines, moving averages, or indicators like ADX (Average Directional Index) to confirm upward, downward, or sideways trends.

Central banks influence currency values through monetary policies, including interest rate changes, quantitative easing, or interventions. Their announcements often drive market volatility.