Exploring Fundamental Analysis
In This Chapter
• Flows of currency
• Policies and rates
• Economic red flags
Fundamental analysts look at the underlying economic conditions and use that information to attempt to predict a currency’s current and future valuation. This is very different from technical analysts, who believe all the information that is needed to predict the price of a currency and a directional trend is a database of historical prices.
It’s important to understand both fundamental and technical analysis when making trading decisions. In this chapter, we focus on the key aspects of fundamental analysis that should be used by currency traders.
What Is Fundamental Analysis?
Fundamental analysts collect data about what is ...