Fundamental analysis is a method of analysis that focuses on economic, financial, and political factors that affect a currency pair. For EUR/USD, this could include events such as monetary policy decisions from the European Central Bank (ECB) and the Federal Reserve (Fed), employment figures and inflation rates in the Eurozone and the United States, political events that could impact the economy of either country, and geopolitical factors that could impact trade relations between the two economies.
Technical analysis, on the other hand, uses charts and technical indicators to study past price trends and movements of a currency pair. Traders who use technical analysis look to identify recurring price patterns and levels of support and resistance on the EUR/USD chart. Technical indicators commonly used in EUR/USD technical analysis include moving averages, Bollinger Bands, stochastic oscillators, and the Relative Strength Index (RSI).
It is important to remember that fundamental and technical analysis are complementary approaches to understanding the price movements of a currency pair. Traders may use both methods to make informed decisions on how to invest in EUR/USD, but should always keep in mind that financial markets are unpredictable and can be influenced by many different factors.
Technical analysis, on the other hand, uses charts and technical indicators to study past price trends and movements of a currency pair. Traders who use technical analysis look to identify recurring price patterns and levels of support and resistance on the EUR/USD chart. Technical indicators commonly used in EUR/USD technical analysis include moving averages, Bollinger Bands, stochastic oscillators, and the Relative Strength Index (RSI).
It is important to remember that fundamental and technical analysis are complementary approaches to understanding the price movements of a currency pair. Traders may use both methods to make informed decisions on how to invest in EUR/USD, but should always keep in mind that financial markets are unpredictable and can be influenced by many different factors.