Importance of Technical and Fundamental Analysis in the Foreign Exchange Market

Abstract

This paper presents review of technical and fundamental analysis as influenced by global foreign exchange across all trading sessions in Meta bank trading server. The broker provide trading platforms suitable for potential investors where trading activities connect traders all over the globe for e-exchange of currencies over short or long time frames. The trading platform is characterized into chartist, line and bar which represent currency symbols and trends of price pattern across the globe. Technical and fundamental analysis was employed for currencies exchange. The major sessions (US, London, Asian and Pacific) therefore US and London sessions were taken into consideration as major impacts in trading activities. Results confirmed that most traders use both forecasting approaches while minority relies on both chartist technical analysis and fundamental analysis. Financial journalists put more emphasis on fundamental analysis as the key factor that overrides other training instruments. Two distinct traders are identified by research, intraday and inter-day traders. The overall impacts attached to fundamental and technical analysis vary across different trading sessions. Foreign exchange traders mentioned a series of psychological motives and consequences of the use of Chartism of market previous histories. The major concept that the research emphasized is on trading tools (MACD, Moving Average, Price Partherns, Trend Line, Price Actions and Volitilies) for technical analysis and financial journalist forecast in support of fundamental analysis (news events). Therefore, it is recommended that traders should follow fundamental and technical analysis simultaneously to achieve successful trading carrier.