Fundamental Analysis Help

Beginner Questions
1

So, I understand fundamental analysis - and I’m trying to practice fundamental analysis one currency pair at a time.

But, in your own trading, how do you got about fundamental analysis?

I feel as soon as I hear about the housing market in Australia or the oil prices for Canada - it will to late & the price will already reflect this underlying fundamental trend.

  • How do you go about evaluating your fundamental analysis?
  • How do you know it isnt already factored into the price?
2

How is it you find you find you are too late to trade off information of the sort you mention? Price does not always adjust instantaneously to FA news or events

For example, look at Brent - up by 33% since Christmas. Its hard to think this is due to speculative trading, there is almost certainly some FA information behind it.

3

It’s true; that’s why I try to choose my entry point according to the position of support/resistant points.

4

So when you see sees or event, you immediately trade off of it? And you find that you aren’t too late and the price moves accordingly, instead of being already adjusted in?

5

have someone else seen that economic calendar been late? the Construction Orders (y/y) doesn’t release yet.
can any moderator explain that please?

6

I don’t watch for news unless I am running some day-trades, in which case I look to get flat well before announcements which cause excessive volatility, e.g, NFPR’s, interest rate announcements etc.

My reasoning is that if important but unexpected news emerges, I will see price move up or down. If some news emerges which doesn’t move price, why should I care?

7

Fundamental analysis is an analysis process related to matters that represent the economy of a country in general.

8

Start off at the top - Central Bank.

In about 20 mins the US Fed will speak - will they raise/retain or cut interest rates.

Likely retain, then will they be hawkish or dovish in their statements - likely dovish, since they were dovish last time and nothing much has changed to cause an about turn.

So then think about USD - it’s been falling this past week - will that continue?

Answer: the dovishness is expected so factored in, but it’s not 100% so possibly some more upside room on Eur/USD - just read the statement and check how price reacts.

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