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.
Euro could extend slide on strong US jobs data Premium
EUR/USD holds steady near 1.0300 in the early European session on Friday after closing in negative territory for the third consecutive day on Thursday. The pair remains technically bearish in the near term as focus shifts to labor market data from the US.
Topics in Depth
GBP/USD falls back below 1.2300, US NFP eyed
GBP/USD is falling back below 1.2300 in the European morning on Friday, failing to sustain the rebound. The pair remains vulnerable amid persistent US Dollat strength and the UK bond market turmoil. The focus now shifts to the US labor market data for fresh trading directives.
Gold price sticks to intraday gains near multi-week top; US NFP in focus
Gold price attracts buyers for the fourth straight day on Friday amid some haven flows. The Fed’s hawkish stance, elevated US bond yields and a bullish USD should cap gains. Traders might also opt to wait for the release of the key US NFP report later this Friday.
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US Dollar: King for longer? Premium
DEEPER DIVE
Recent developments in the global economy
Take a look at recent developments in the US, Asia and Europe. US: Recent business surveys suggest that the clean election outcome has led companies that delayed investment and hiring due to election/regulatory uncertainty to start putting money to work.
Has households' purchasing power returned to its pre-inflation level?
While in most major advanced economies the year-on-year growth in nominal wages has been back above inflation for a few months now, we can ask ourselves where households’ purchasing power stands compared to its pre-inflationary crisis level.
China sheds light on its 2025 fiscal policy focus
Markets have been long awaiting more details on China's fiscal policy specifics. A key document shows resources will be focused on supporting equipment renewal and consumption and looks to help China's economy further build on existing areas of strength.
STOCKS
Johnson & Johnson stock reaches 52-week low as markets fall Premium
Johnson & Johnson stock descended to its lowest price level in over four years on Wednesday as the broad stock market indices fell on an increased sense that Fed interest rate cuts may halt due to the strong labor market.
FX in Depth
There are risks too from President-elect Trump’s policy proposals. Significant immigration controls could create labour shortages that constrain growth and push up wages in some areas of the economy. Then there is the uncertainty over trade tariffs.
![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.