The Importance of Fundamentals in FOREX Trading

Fundamental analysis is a very deep well. It is important to understand the basic fundamentals that drive currency prices, even though most traders use technical analysis to make specific day-to-day trading decisions. Fundamentals can be extremely powerful and useful to the trader. But they have a much steeper learning curve to use effectively than do technicals. Good strategy: use a fundamental analysis to predict the underlying trend, up or down, of a currency pair. Thereafter, if your technical analysis indicates a position in the opposite directionâ

By Michael Duane Archer
Michael Duane Archer has been an active futures and FOREX trader for more than 35 years. He has worked in various advisory capacities, notably as a commodity trading advisor, registered SEC investment advisor, and branch manager for Heinold of Hawaii. He currently trades FOREX and futures and is involved in several technical analysis research projects.

Copyrighted 2020. Content published with author's permission.

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