What is Forex?

Forex is an abbreviation for “Foreign Exchange” and is often referred to as “FX”. Forex is called the foreign exchange market where the currencies of the countries are bought and sold mutually and their value is determined. It is the highest and most liquid market in the world.
Forex offers many advantages for investors. However, in order to seize these opportunities, it is necessary to know the market well. If you have enough knowledge and experience, you can turn your savings into profit.

Fundamental Analysis

It is a method of estimating the statistics that will affect the future price movements of the financial instruments we will use in the Forex market, depending on economic, political and environmental factors. With the fundamental analysis method, we make our decisions about the market based on the fundamental principles that guide the exchange rates. Investors who will trade in the market with the fundamental analysis method will be able to access more reliable information. They will determine the factors that determine the value of the currency they have chosen in accordance with supply and demand. At the same time, fundamental analysis will allow the investor to have a good idea of ​​a smart investment. You will get precise and real results when trading in the market. Fundamental analysis is one of the indispensable tools for predicting the future of prices in the forex market.

The main data of importance for fundamental analysis can be specified as follows:

  • Employment Figures (Unemployment Rate, Non-Farm and ADP Private Sector Employment, Weekly Unemployment, Labor Force Participation,…)
  • Interest rate and Central Bank Decisions
  • Industry, Service and Manufacturing Sector PMI
  • CPI
  • GDP changes

Technical Analysis

Technical analysis is a method of predicting future movements by making use of past price movements. With many different methods in technical analysis, market actors try to make decisions by predicting what levels the prices will reach in the future. Technical analysis is based on the Dow Theory. The purpose of the method developed by Charles Dow. By ignoring short-term price movements, it aims to identify the main trend and be on the right side. While detecting the trend, support is taken from economic activities.