How do currency exchange rates work?

Currencies trade in pairs, with the exchange rates based on the price of one currency relative to the other. Major types of analysis include technical and fundamental, with many traders using a blend of both approaches. The foreign exchange market is the largest market in the world, with trillions of dollars changing hands on a daily basis.

How do forex traders use fundamental analysis?

In looking at this currency pair, forex traders who use fundamental analysis may look at factors such as the interest and inflation outlook for both currencies. They will also look at factors such as employment, which may provide insight into future interest rate trends.

What is technical analysis for EUR/USD?

Technical analysis focuses on previous price action, the repeat of well-known chart patterns, and other factors. EUR/USD started the week on a firm footing and climbed above 1.0600 on Monday. In the European morning on Tuesday, the pair struggles to preserve its recovery momentum and trades below this level.