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It is possible to trade on just technical analysis. And quite a few Forex traders operate just on that!
However, it’s good to know that what moves the forex market at the very bottom – hence the name – is fundamental changes in value.
So, even if you are a budding technical forex trader, or one with some experience, having at least a basic knowledge of fundamentals will help your trading considerably.
Fundamental analysis is a really broad field that will give you plenty to study if you are interested in it. But there are some key elements that pop up regularly and distort the markets.
A purely technical FX trader might see a good set up, and suddenly the market moves in the wrong direction. Why? Well, it could be one of the events we discuss below.
Interest Rate Decisions
Central banks are mandated to maintain price stability, and they have a diverse range of tools to do this. Without getting too far into the weeds, basically, central banks will raise interest rates...
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