Forex analysis splits into two lenses: fundamentals (macro data and policy) and technicals (charts and momentum). Strong traders blend both. Here is how to analyse the FX market from each angle.
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Fundamental Analysis for FX
- Interest rates: the biggest driver of currency value.
- Economic data: GDP, inflation, employment.
- Central-bank policy: rate paths and guidance.
- Geopolitics and trade: risk and commodity flows.
Technical Analysis for FX
- Trend and momentum: moving averages, RSI.
- Support/resistance and structure: key levels.
- Volume and position data: sentiment.
How to Blend Them
Use fundamentals to set direction ('what matters') and technicals to time entries and exits. Both together beat either alone.
FAQ
Which analysis is better for FX?
Fundamentals drive long moves; technicals improve timing — combine them.
How do I start analysing FX?
Learn the economic calendar and one trend filter, then practise on a demo.
Related: Analysis Basics and Trading Signals.