In this section, RTFX’s trading desk offers an insight into the primary methods of analysing the Forex markets. All RTFX forex analysis is updated, as a very minimum, on a daily basis. However, some tools are updated with much greater frequency. This section consists of the Fundamental analysis and the Technical analysis sections.
Both technical and fundamental approaches may be considered independently and exclusive of each other, but it is increasingly becoming clear that decisions to act in the market should be a careful balance of both approaches; while also, naturally, keeping into perspective the time frame of the expected investment’s duration.
In the Forex market fundamental analysis attempts to gauge the overall state of the economy, by evaluating, amongst others, factors such as interest rates, production, earnings, and investor confidence. Fundamental analysis attempts to determine the real value of a currency based on the condition of the factors underlying the respective economy.
Technical analysis maintains that all information is already reflected in the price and that price movements lead to recognizable price chart patterns. It therefore tries to determine a trend on the grounds that sentiment changes may, at least in part, predict trend changes.