Forex market .. How do you expect its movements?

Today, the forex market has become one of the most famous financial markets, and it is attracting many people who aspire to invest their surplus income, but despite the wide spread achieved by the forex market, many forex investors do not have the basic information that enables them to predict the movement of the forex market in a better way. Salim. In the following lines, we will take you, dear reader, on a quick tour to learn how to anticipate the movement of Forex.

Do you know what are the methods of forex analysis?

The title may be a bit vague to you at first, but have you ever watched a TV economics program?.. the answer might be yes. Usually economic programs host economic analysts, these analysts analyze the market either fundamental analysis or technical analysis, and these two types are the methods of analyzing the forex market.

In short; Fundamental analysis is concerned with collecting news, whether economic, political or health, then analyzing it and determining its impact on the various currencies in the forex market, in order to anticipate the direction of the forex pairs and thus make a decision to buy or sell.

As for the second type of analysis, “technical analysis”, it is never concerned with news, but is concerned with analyzing the price movement of currency pairs using a set of tools and indicators that it applies to the price chart in order to predict future prices.

Forex market .. How do you expect its movements?
Forex market .. How do you expect its movements?

Now if I try to explain technical analysis to you in more depth it may not be of much use because technical analysis needs a practical application to understand it, but perhaps it is good now that I complete the tour with you in applying the fundamental analysis tool to some of the most important currency pairs in forex, it would be Totally useful to you..let’s continue the journey.

How do you analyze the performance of the US dollar?

If you follow closely the developments in the forex market, and if you look at a price screen Easymarkets You will see that the US dollar index (DXY) has recorded a clear rise, which makes it the most attractive thing for Forex market followers, and the reason for this is the tight monetary policy that the US Federal Reserve is currently pursuing, which was to withdraw bank liquidity first by selling bonds then raise interest rates Significantly.

When you now look at the movement of the US dollar, you will find that the pace of the US dollar’s rise has weakened somewhat, and the reason for this is that US inflation rates have recently fallen to 8.5%, which made Forex market observers expect that the US Federal Reserve may review its plan to continue raising Interest rates, and thus caused weak movements in the US dollar.

How do you analyze the performance of the Eurodollar?

You must also have heard of the great economic pressures you are under Euro-zone Currently, after Europe and America imposed sanctions on Russia, Russia has reduced oil and gas supplies to Europe, especially Germany, which caused a crisis in the energy market inside Europe, which led to an increase in the problem of inflation and also caused the work of factories and companies.

Due to the energy market crisis, the activity of companies and factories in Europe has weakened at the same time that the European Central Bank is also raising interest rates in order to face high inflation rates. You can see the impact of that crisis by following the movement of the EUR/USD pair on the price screen, as the EUR/USD fell to the level of $0.99, the lowest level since 2002.

Your way to fundamental analysis

You can now use the same tools that we used during the previous lines in order to know and forecast the future trends of various currency pairs. All you have to do now is start learning the most important economic factors that affect forex movements.

Source: موجز مصر by

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