In the forex market there are two types of analysis that you can use:fundamental analysis and technical analysis.There is a constant debate about which is better,but to tell the truth you must know well the two.Let's read a little more about each one and then compare the two methods.

A fundamental analyst seeks to play with the news (eg, ECB, European Central Bank or the Fed, the U.S. Federal Reserve),makes an analysis of all the economic and social development of each currency pair and reaches a conclusion about the current value of this pair of Forex.So fundamental analysis is more closed in Forex and many also trade forex for their views on the economic situation,by simple ideas they have.And there are others who simply take the Forex like a game of chance.

Fundamental analysis looks at the market forces at the level of economic and social policies affecting demand and supply.In other words,looks to the events of the health and economies of different countries and see if they are growing and those that are in trouble.

The idea behind fundamental analysis is that a strong economy have a strong currency.This is because the better the economy of a country or an economic zone, the currency inspires more confidence.

Technical analysis is the study of the movements of currency pairs ... in summary:charts and indicators. The idea is that looking at the historical movements of the pairs,based on the fluctuations,can be determined where the price of money going forward.Looking at the charts we can identify trends and patterns that can help us find good opportunities in forex trading.

The historical market data can be graphically reproduced to cover various periods of time.The professional technician can look at various charts during a specific period of time in order to choose the basic levels of entry and exit of a negotiation.By studying the graphs the traders are able to get quick information that support their decisions.

Experienced traders will combine their fundamental analysis with technical analysis to plot actual points of entry and exit,and seek confirmation of information provided by their fundamental analysis.Just like most markets,FOREX is controlled by supply and demand.