🧠 1. Fundamental Analysis

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"What causes currencies to rise or fall?"

Fundamental analysis focuses on the economic, political, and social factors that influence currency values.

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📌 Examples of Fundamentals:

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• Interest rates

• Inflation and employment data

• Central bank policy (e.g., Federal Reserve, ECB)

• Political events (elections, wars, sanctions)

• Economic indicators (GDP, CPI, NFP)

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🧭 Used For:

• Understanding long-term trends

• Predicting market-moving news

• Trading around major economic events

✅ Best for: Swing traders, position traders, or news traders

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📉 2. Technical Analysis

"What do the charts and price action tell me?"

Technical analysis studies historical price data, patterns, and indicators to predict future price movements.

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📌 Tools Used:

• Candlestick patterns

• Support and resistance

• Trendlines and channels

• Indicators (RSI, EMA, MACD, Fibonacci)

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🧭 Used For:

• Timing entry and exit points

• Identifying trends and reversals

• Analyzing short- to mid-term movements

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✅ Best for: Day traders, scalpers, and chart-focused traders

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🔁 Which One Should You Use?

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Feature                    Fundamental                                Technical

Focus Area.             Economic & Political News.        Price Charts & Patterns

Time Horizon.         Long-Term.                                  Short to Medium-Term

Decision Drivers.     News, Data, Central Banks        Candles, Indicators

Common Users.      Swing & Position Traders.           Day Traders & Scalpers

📌 Smart traders combine both: Use fundamentals for direction, technicals for timing.