To make informed decisions and mitigate risks, businessmen analyze and predict foreign exchange markets. It helps them strategize on when to buy or sell currencies amidst the ever-changing current pair prices, with an aim of making the best profit. Thus, predicting the market is one skill to be mastered if you want to invest on foreign exchange.
Forex analysts developed ways on how businessmen, banks, hedge funds, traders, and companies determine the factors that affect the movement of prices. These are (1) technical analysis and (2) fundamental analysis. If you want to have the best forecast, using both methods will certainly make that happen.
In technical analysis, it is important to look on the past movement of prices to predict its future value. This is due to the belief that price movements are predictable by inspecting the behavior of a currency of a period of time. In this method, automated technical analysis is used b…