Fundamental analysis involves examining the movement of currencies in relation to international political and economic events, present and past. This technique requires a lot of data and much more than forex basics to make sense out of it. Fundamental analysis does not help with entry or exit points either. These days, most forex trading education websites seem to advocate technical analysis over fundamental analysis. Technical analysis takes actual currency fluctuation into account as opposed to the forces that affect currency rates. Nevertheless, some traders choose to combine both techniques.
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