Forex analysis is generally divided into two, namely fundamental analysis and technical analysis. There are also those that add Intermarket analysis and sentiment analysis as a compliment. Most traders combine several forex analysis methods to get a more complete picture of market conditions, but there are traders who focus on just one of them.
Beginner traders need to learn various ways of analyzing forex and the different characteristics of each, before starting real trading. After that, know what needs to be considered when analyzing forex in order to reach the right conclusions and support you in an effort to reap profits.

Types of Forex Analysis Methods-

1. Fundamental Analysis
Fundamental analysis is a way of analyzing forex by examining price movements based on economic data and the lively news discussed on the financial market. User traders fundamental analysis will observe economic data that influence market decision makers, such as inflation, interest rates, Gross Domestic Product (GDP), unemployment, and so on. In addition, news regarding political stability and security is also often highlighted to conclude whether the economy of a country is healthy or not.

2. Technical Analysis
Technical Analysis is a way of analyzing forex by measuring price changes using statistical tools such as graphs and mathematical formulas. The application of technical analysis requires a price chart ( chart ) and indicators that are examined by certain methods.

In the past, traders needed to draw a chart and perform technical analysis calculations manually. However, now the charts and technical indicators needed are integrated with the online forex trading platform, making it easier. Traders simply understand the methods of technical analysis (how to read charts and indicators) only.

3.Other types of Forex Analysis
Besides fundamental and technical, some traders also examine other forex analysis branches: sentiment analysis and intermarket analysis. However, most traders only use it is as a supporter of fundamental and technical analysis.

Sentiment Analysis is a way of analyzing forex by observing mutual agreement (consensus) from market participants to anticipate price movements. In general, there are four sentiments that can arise in financial markets, namely bullish sentiment, bearish sentiment, high-risk interest ( risk appetite ), and risk avoidance.

Intermarket Analysis is a way of analyzing forex by examining the relationships and interactions between the four groups of major financial assets, namely stocks, bonds, commodities, and currencies (forex). For example, it is known that there is a positive correlation between the stock index and the exchange rate of a country's currency.

Author's Bio: 

I Manisha, Market researcher highlighting the topic of "The Best Ways to Analyze the Forex Market" Also, we provide Forex tips and Currency tips