Forex Analysis
Forex analysis is how traders assess the next moves a currency pair is about to take, providing insights for taking a position. For this reason it is an essential tool for traders to make the best decisions in their daily trading routine, based on the fundamental and technical aspects of an asset. Fundamental analysis is based on the countries' economic situation, future prospects, and primarily what central banks plan to do with interest rates. Technical analysis focuses on previous price action, the repeat of well-known chart patterns, and other factors.
EUR/USD Price Forecast: Focus shifts to US PCE, and 1.1200 Premium
EUR/USD managed to regain balance and leave behind Wednesday’s deep pullback, revisiting the 1.1190 region on the back of renewed and marked downward bias in the US Dollar (USD) on Thursday.
Topics in Depth
GBP/USD clinches fresh 2024 highs around 1.3430
The GBP/USD currency pair reached a 31-month high of 1.3434 on Thursday, marking a significant milestone in its upward trajectory. This surge was primarily driven by a widespread selloff of the US dollar, buoyed by improved economic indicators that alleviated concerns about a potential economic slowdown.
Gold holding at higher ground at around $2,670
Gold breaks to new high of $2,673 on Thursday. Falling interest rates globally, intensifying geopolitical conflicts and heightened Fed easing bets are the main factors.
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DEEPER DIVE
The FOMC, blue chip or the new framework: Predicting the Fed Funds rate
This installment presents a new framework to predict the two-quarters-out level of the fed funds rate. We compare our framework’s fed funds forecast with the FOMC and Blue Chip's forecasts to examine who is more accurate at predicting the near-term fed funds rate.
On the path to widespread monetary easing in Asia
Bank Indonesia is the first central bank from the emerging countries in South Asia (excluding the Philippines) to cut its interest rates. This movement, which is expected to be followed by a further interest rates cut before the end of the year, is not expected to be a one-off.
Will the ECB be forced to follow the Fed?
The Eurozone economy is faltering, as today’s PMI data for September highlights, yet it’s the Fed that’s cutting interest rates by 50bps, while the ECB remains on a more cautious rate-cutting path. However, the September PMI data could add some urgency to ECB rate cuts for the rest of this year.
STOCKS
Amgen slips on eczema drug results Premium
Amgen stock slid more than 4.5% at the start of Wednesday trading after the pharmaceutical giant reported the results of several drug trials. DJIA, of which Amgen is a member, fell 0.4% against a backdrop of an improving NASDAQ.
FX in Depth
As a result, Bank Indonesia is the first central bank from the emerging countries in South Asia (excluding the Philippines) to cut its interest rates. This movement, which is expected to be followed by a further interest rates cut before the end of the year, is not expected to be a one-off.
![BNP Paribas Team]()
Cycle Analysis
"A cycle is a recognizable price pattern or movement that occurs with regularity in a specific time period"
Sentiment agregator
"Advisory Opinion, comprised of arguments and trade ideas which have been committed to publication and therefore have an influence on the trading public, are considered a sentiment indicator."
Intro to Ellio Wave
"Have you ever read news updates mentioning Elliott Wave yet you don’t have a clue what these mean for the Forex?"
Support and resistance
"Support and Resistance Lines conform the most basic analytical tools and are commonly used as visual markers to trace levels where the price..."
Currencies
Education
What are the types of Forex Analysis?
There are innumerable ways to analyze the Forex market, but its goal is the same: trying to predict where the price is headed next. The most popular types of forex analysis are:
- Technical analysis
- Fundamental analysis
- Sentiment analysis
What indicator is best for Forex?
There are several indicators key to trade the forex market, and all of them are a great tool for the trader to forecast where the price can go next.
There are indicators of sentiment, trend, volume, etc. Their value will depend on the strategy the trader is trying to follow and its risk management rules.
How do you analyze trends in Forex?
Detecting directional movements is critical. At the end, an FX trader needs to determine and anticipate such a move, or trend, to make profits.
There are multiple tools that can be used to achieve the goal, such as trend lines, supports, resistances, technical indicators, and even pure observation of the price behaviour on the forex chart.
It’s important to take into account that fundamental analysis is as important as the technical one. Using both the trader could better forecast the trend to maximize the benefits and limit the losses trading Forex.
How do I create a Forex Strategy?
The best strategy for one person could be the worst one for others. There are several questions that need to be answered ahead of defining it. How many hours can I dedicate to FX? What is my risk tolerance? These among the most relevant questions.
A forex strategy is a combination of tools that should result in a positive balance in a certain period of time. During the creation of a strategy, flexibility and imagination are very important values. Once the strategy is created, discipline is one of the greatest virtues.
How can beginners start trading forex?
Every learning process is evolutionary and requires the right steps to be followed in order to obtain knowledge and develop skills.
For new traders, it is advisable to work with simple but very powerful tools, such as trend lines, support and resistance or Japanese candlesticks.
It is advisable to start working on simple patterns, such as triangular figures, rectangles or reversal patterns. These types of layouts are easier to manage and the novice trader will learn to manage positions without large ranges that increase risks.
Educate yourself. Knowing the tools, and learning to use it is critical. As in any other professional career, learning before practicing is the key to success. Recognizing strengths and weaknesses is also a critical part of this process.
How do I get a forex signal?
There are multiple providers of forex signals send traders positions that are ready to be traded out of box. FXStreet has its own signals service with experts at different markets. In the FXS Signals service, you will have access to multiple trading signals, both algorithmic and executed by our team of expert analysts. Automated strategies are presented in a transparent manner and the technical fundamentals on which the strategy is built are provided. Manual strategies executed by FXS experts are always explained with a didactic objective. Tthat allows the user of the FXS service to not only execute the trade with understanding, but also to make their own decisions in the future.