The two main methods of currency market analysis are Fundamental analysis and Technical analysis. A clear point of difference between fundamental and technical analysis is that Fundamental analysis studies the causes of market activities, while Technical analysis studies the effects of the market activity. The main focus of fundamental traders is on news events, and the technical traders are focused on reading a price chart.

Fundamental Analysis:-
Fundamental analysis is used to evaluate changes in the forex market. In this fundamental analysis where macroeconomic indicators, property market, and political significance are included. Macroeconomic indicators include data such as growth rate which is measured by gross domestic product(GDP), interest rate, inflation, unemployment, money supply, foreign exchange reserves, and productivity. In the property market, shares, bonds, and assets are also included. Basic things in this analysis are focused on financial and economic theory, as well as political activities so that things that affect supply and demand can be determined.

Technical analysis:-
The technical analysis is often used to analyze changes in the price of a particular forex currency pair or other markets. Technical analysis is work on mainly two systems which are manual system and automated system. In a manual system where the trader can examine the technical indicator and It interprets them into executing buy or sell decisions. And in the automated trading where the trader is used software to look for certain signals and interpreting that data into buying or selling decisions.

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I am from Trifid Research and through it, we provide Free Currency Tips and Free Forex Tips