The two main analytical methods of the currency market are fundamental analysis and technical analysis.
Fundamental analysis: Fundamental analysis focuses on the development of finance, economic theory, and political situation to determine supply and demand elements. Fundamental analysis attempts to measure the intrinsic or basic value of a currency, and how this intrinsic value may change under certain circumstances. In its practical application, fundamental analysts assess the impact of economic factors (such as inflation, interest rates, balance of payments, etc.) on a certain or a certain combination is used to form an opinion on the basic value of currency.
Technical analysis: technical analysis observes price and transaction volume data to determine the future trend of these data.
Difference: The most obvious difference between fundamental analysis and technical analysis is that fundamental analysis studies the causes of market movements, while technical analysis studies the effects of market movements.