My understanding on fundamental analysis is that a review on real economic activities or events which are affecting foreign currencies exchange strong or weakness that is refleceted in the forex spot market. Some factors that affects a country currecy exchange rate in corresponding to forex fundamental analysis comprises of country inflation, interest rate, current account, public debt, terms of trade, political stability, economic growth, and so on. Meanwhile, forex technical analysis is basically a review on the currency market movement up and down on chart tool based as a utility to identify market direction, level, and momentum. Perfectly, we should look at both analysis together so that we can grab all aspects of the market in one basket. The advantage of the fundamental analysis will give us the market’s insights of current economic information and technical analysis will give us clues to the probability movement based on chart historical data. While we are trading by using charts as tool then technical analysis knowledge and skill will much help us for example to find the best momentum, entry location, exit target, and determine position size.
To make it easier to understan…
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