Saturday, 3 March 2012

hey, now you know what technical analysis is.
lets have a taste of   "What fundamental analysis means in Forex Trading. "

Fundamental analysis is a way of looking at the market by analyzing economic, social, and political forces that affects the supply and demand of an asset. If you think about it, this makes a whole lot of sense! 




Just like in your Economics  class, it is supply and demand that determines price.




You can relate this economic term supply and demand in forex as  if:








In essence:::


 Higher currency value    =>   Good economy => means price of currency will increase in future
 Lower currency value    =>   Bad economy  =>  means value of currency will decrease in future


Hope this will help you in figure out what is fundamental analysis means.

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