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: Slightly oversold RSI warrants caution for bears ahead of US PPI Premium
The selling bias around the EUR/USD pair remains unabated for the fifth consecutive day in the wake of the continuation of the so-called Trump trade, which has been a key factor behind the post-election US Dollar (USD) rally.
Topics in Depth
GBP/USD holds losses below 1.2700 on sustained US Dollar strength
GBP/USD is holding losses near multi-month lows below 1.2700 in European trading on Thursday. The pair remains vulnerable amid a broadly firmer US Dollar and softer risk tone even as BoE policymakers stick to a cautious stance on policy. Speeches from Powell and Bailey are eyed.
Gold price hits fresh two-month low as the post-election USD rally remains uninterrupted
Gold price drifts lower for the fifth consecutive day and drops to its lowest level since September 19, around the $2,554-2,553 region heading into the European session on Thursday. The commodity continues to be weighed down by an extension of the US Dollar's post-election rally to a fresh year-to-date.
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DEEPER DIVE
Global takeaways of the US election
We view a second Trump administration—and more specifically his proposed tariff policies—as a catalyst for further deglobalization and global economic fragmentation. Tariffs could also act as an inflection point for China to approach stimulus efforts differently.
What Donald Trump’s victory means for China
Chinese assets sold off after the Trump 2.0 outcome, but policymakers should be more prepared this time around. China’s stimulus plans and currency management responses are likely to be the most watched factors in the months ahead.
Business investment: Software outpaces bricks and mortar
In France, in Q3 2024, for the first time (statistical series dating back to 1949), non-financial companies invested more (in billions of euros, at constant prices) in "information and communication" than in construction.
STOCKS
Home Depot stock gains on analysts raising price targets Premium
Aided by analyst loyalty, The Home Depot (HD) is gaining ground one day after the remodeling retailer sold off following third-quarter results showing dwindling comparable sales. HD stock has risen 1.6% on Wednesday to trade north of $409.
FX in Depth
Chinese assets sold off after the Trump 2.0 outcome, but policymakers should be more prepared this time around. China’s stimulus plans and currency management responses are likely to be the most watched factors in the months ahead.
![ING Global Economics 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.