What Is The Basic Analysis Of Forex?
Basic analysis expresses the analysis of the economic and political factors affecting the Forex market. The basic analysis will predict the impact of financial and economic news on the Forex market. The main objective of the analysis is to analyze macroeconomic factors and their impact on foreign exchange prices.
The analysis of Forex price movements is of great importance to the analysis of the current state of world financial markets, the activities of market makers, the economic policies carried out by the government, political changes, price trends, future prospects and interpretation, so the basic analysis is the most important and difficult part of market analysis.
Although the various factors affect the movements of foreign exchange prices, the price is the main factor, and therefore the economic indicators of the country are affected. Various economic theories investigate the effect of such basic factors, economic development and crisis periods on foreign exchange prices.
The two main methods are known as technical analysis and basic analysis. Just as there is no way to predict what will happen in the market, there is no concrete answer to the question of whether technical analysis or basic analysis of Forex is better. Most experts who base their trading on market technical analysis will tell you that this is the best method.
Before we discuss the advantages and disadvantages of technical and fundamental approaches, we need to clarify one point. Trying to combine both analyzes in your daily trading is the best choice. If you take the best of both ways and apply your principles correctly, you will get the best results. However, most processors are not equally focused on technical and fundamental analysis, so they have to choose which one will be the main market analysis method.