In a basic Forex analysis, you are basically evaluating a business for Forex, an equity market or a country. If you think pricing a company is tough, then you should try to value a whole country. This can be difficult to do, but there are indicators that can be studied to give insight into how the country works. You may need to study a few indexes when analyzing forex: Non-firm payrolls, Consumer Price Index (CPI), Purchasing Manager Index (PMI), durable goods and retail sales.
In the Forex market, most traders use basic forex analysis to predict long-term trends. However, some traders do short-term trading based on the response to various news releases. There are several meetings where you can get comments and it can affect markets just like any news release or index report. All of these meetings often discuss interest rates, inflation and other factors that affect currency values.
You should keep an eye out for two important meetings – Humphrey Hawkins Hearings and the Federal Open Market Committee. For example, the Federal Reserve Chairman's comment on interest rates, it would cause market instability.
By reading the reports and examining the commentary, a basic Forex analyst can get a better idea of most long-term forex market trends understanding Short-term traders can benefit from extraordinary events as the Forex market continues to improve. If you decide to follow a basic forex strategy, you will always want to keep an economic calendar effective. Your forex broker may be able to provide you with real-time access to such information for use in your forex analysis.