Ideally, I would say forex that all traders forex should be aware of dove and france make use of guidelines both types of trendline analysis.
Whether the government agencys figures are accurate or not doesnt mean that currency investors shouldnt worry about inflation.
Regardless of whether the official economic indicators are actually andare correct, option the market will come to its trendline own (implicit) consensus, and strategy the data will still form the basis for investment decisions.In the end, all traders- regardless of analytical approach believe that efficient markets theory is flawed, and that exchange rates (and other asset prices, for that matter) are not always correctly valued.Finally, forex he asserts scam that the markets response to fundamental news releases is often illogical, and may only serve to confuse traders that would otherwise depend on technical rates signals to make trading decisions.In other words, given that comparative inflation rates can and do drive exchange rates, its important to be aware of such rates, be they explicitly etrade provided by strategico a government agency or implicitly priced in by investors.Ultimately, both fundamental factors AND technical factors drive exchange rates, with the latter primarily dictating short-term movements and the latter bearing more heavily brokers on the medium-term and the long-term.Since online exchange rates dont move up and down in straight lines, there will be plenty strategy of opportunities for technical traders to earn a profit on a minute-by-minute and even week-by-week basis.I was inspired to write this post by a recent article published by Counting Pips, entitled.The goal of any type tipi of analysis is to identify and exploit such inefficiencies.The fact that very few technical traders will look at 5 year charts and very few fundamental traders will waste their time on 1-day option charts largely explains the perceived value of both types of analysis.If one were to concede that all fundamental data has already been priced into currencies, that one would have to make the same concession with regard to price data, which is the backbone of technical analysis.Seahs thesis can essentially be boiled down as follows: First, by the time traders have a chance to act on fundamental developments, option it is inherently too late as such developments have already been priced into the exchange rates.And yet its possible for both to earn consistent, out-sized returns.The Forex euro fundamental analysis below covers the various currencies on the market and the most recent events, announcements, and global developments that affect the Forex strategy market.I think its much more practical for traders to decide which type of analysis is better suited to their trading style and even their personality type, trading and analyze accordingly.With regard to the final point, I would agree that news releases can cause exchange rates to move illogically, but as Seah concedes, these inefficiencies will usually smooth themselves out over the following trading periods.The Problem with Forex Fundamental Analysis.For the sake of debate, Id forex like to present scam my rebuttal.For the best analogy, consider that Warren Buffet probably doesnt know what a stochastic is, while quantitative hedge fund managers probably couldnt care less about value.A fundamental analyst with a long-term time horizon wouldnt be swayed by such short-term fluctuations, especially if they are illogical. The following are the most recent pieces of Forex fundamental analysis from around the world.
I think Seahs first argument is inherently self-defeating.
In reality, though, I think this is akin to trying to have ones cake and eat it too.
While the author, Warren Seah, delivers best a stinging critique of fundamental analysis, I think most of his points are pretty hollow.