There are two basic approaches to analyzing the currency market, fundamental analysis and technical analysis. The fundamental analyst concentrates on the underlying causes of price movements, while the technical analyst studies the price movements themselves. A Technical Analysis is what one uses to attempt to predict future price movements, based on past time framed analysis and the reading / understanding of graphics. The study of specific factors, such as wars, discoveries, and changes in Government policies, which influence supply and demand, and consequently prices in the market place.
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