Main Keys Of Forex Market Analysis

Online trading is a very complicated system and only its full understanding, knowledge and experience can let you trade Forex successfully. The interest in technical analysis is increasing in Singapore Forex and other Asian countries and sometimes it totally replaces the fundamental analysis. But it is clear that technical analysis is not enough for a successful trading in Forex market. The world economy is so changeable so any news can have a big and sudden influence on the market and cannot be predicted by just looking at the graphs.

Financial calendar is a good instrument for the fundamental analysis .You can watch it in order to be updated with all financial news and events and be ready to the changes in the market when something important happens in the world. You can find a calendar with financial events on many financial sites as well as on the sites of all Singapore brokers. The most influencing the market news usually happen in USA (USD) and Euro zone (Euro). That is the reason why 60% of global trading is done on EUR/USD currency pair. This is the most traded currency pair in Forex as Europe and USA have the biggest economical systems that influence all the world economy. Though trading in Singapore is mostly focused on such currency pairs as AUD, JPY, SGD and USD, still the currency pair EUR/USD has a big interest among Asian traders as well.

The Europe Governing Council gathers every month, on Thursday of the second week when the Europe interest rate is announced. During this meeting the members give the average review of euro zone economic development prospects and rates of interest that is the most important tool to control liquidity.

The similar broadcast of the interest rates in USA is also important for the fundamental analysis of USD. Interest rate of both USA and Europe is a important indicator for the currency pair EUR/USD. We also suggest to watch the cross-currencies that don’t include USD for a detailed picture of a fundamental analysis. While trading with EUR/USD currency pair there is a good reason to analyze the cross-currencies such as EUR/JPY and EUR/CHF. The Swiss (CHF) economy, for example depends on Euro zone economy. That’s why the fall of EUR/CHF causes the change in rate of EUR/USD.

There are many traders who concentrate their attention on both technical and fundamental analysis while trading on financial market. Though these analyses are very different by way of analysis, they give a broader and detailed view of the market. It is important to be regularly updated in the world political and business events while trading in Forex market, as any change in one of the country’s economy may cause the chain of movements in Forex market charts.