In forex trading, Fundamental Analysis is an analysis to determine the direction of the exchange rate movement of the market / price / currency based on the economic conditions of a country.
fundamental analysis is able to answer the question "why the price is moving."
for example :.
There are news that the beginning or the demand for new housing in the US increased by 5% housing
this shows that the economy of the United States was hot, illustrated by the increasing ability of people to buy homes.
therefore, Americans economic increases, the exchange rate of the USD against other currencies also strengthened.
and currency pair that basicnya the US dollar as the USD / JPY, USD / CHF, USD / CAD price will increase.
Conversely currency pairs like GBP / USD, EUR / USD, AUD / USD price will drop.
in fundamental analysis, we must distinguish between the question of information.
Due questions or rumors always precedes the information tersebut.sehingga when rumors began to circulate, usually hung traders and operations so that when the real news was released, the market situation is already saturated and the price will soon reverse direction.
fundamental analysis is really excess provide information on the cause prices to move.
the downside is often preceded by rumors.
