Novices looking at currency pairs assume that how currencies posted against each other storm the brain ever. Yet only the pair currencies are enough to create doubts in leveraging speculators, mistrust in margin playing traders and fear in long term investors and such is the power of global currencies.
It is important to be laced with the adequate Fundamental Analysis and Technical Analysis weapons prior to entering this sphere. While both these lines of thinking have been quite in opposition to each other, it is true that a joint study can bring great results. Technical analysis deals with tracking the data of the recent past to evaluate the price movement at a given point in time. Price and volumes are closely associated by technical analysts and they believe in reading various Bollinger patterns, Candle stick data for bringing out the closest areas of resistance and the expected time frame of support. The fundamental analysts believe that such a line of thought is hogwash and currencies go for a random walk and can be unpredictable in their movement.
The fundamental analysts look at the earnings, dividends, ROI and fresh products and Research and Development tools launched by a currency to gather its stature. This means that they believe that currency with a good earning graph in recent times would be less prone to a volatile attack.
Having said this and explained the above two precepts in contrast lights, it is important to suggest that both the analyses believe in the potency of informational news on pair currencies. An earthquake in Japan can create a tremor in Nikkei and a typhoon devastating Florida can bring the Wall Street crashing. The central idea is to change the pips that you had decided to post after any informational news that you receive. Such news should have a global significance and it shall not be contained by any territory or restricted place on earth.
You can learn all about the currencies through market experts, portfolio holding managers, investment strategists and even the softwares and bots that work over the Meta trader platforms 4. However, it is important to be grounded through some currency education course that can be attended over the virtual medium or over the traditional institutes.