Forecasts of the Forex market for today, a week, a month or even a longer period are sought by many people, among them those who are interested in prices for currencies, precious metals or oil contracts, and those who are planning to start trading or more or less actively leads her. Such information may also be interesting for Forex investors.
Before we talk about something, let’s try to understand what the Forex analyst is, forex market forecasts. In fact, forecasts are nothing more than an expert opinion, which reflects an assumption about the behavior of prices for a certain currency or another product during a certain time.
Based on what predictions are made? First of all, based on market analysis using technical indicators, as well as assessing the fundamental factors that may affect the price of a currency. For example, the Russian economy is largely dependent on oil and its products, therefore, the decline in prices on world markets, which is now observed, adversely affects the rate of the national currency of the Russian Federation. The economies of the European Union and America are more diversified, so the value of the dollar and the Euro does not depend so much on the price of a single product, but, nevertheless, changes in the level of production, unemployment, refinancing rates of national banks and other macroeconomic factors in one way or another affect the value of the national economy. currencies.
Should I believe the forecasts?
In order to understand how much it costs to believe the forecasts, you should think about how the result is determined. Among the factors affecting the forecast are: – the ability to analyze information; – expert qualification; – The action of force majeure factors.
So, forecasts for a month, quarter or year are rarely reliable, because it is simply impossible to analyze fundamental factors over such a long period of time. For example, no one can predict natural disasters or military conflicts that always somehow affect the economy of a country.
The forecast for one or two days is more accurate, but largely depends on the qualifications of the expert and the technique of analysis, because the price chart is the same for everyone, but the forecasts from different specialists can be completely different.
Remember that no expert can give a 100% forecast, so use analytical information as a supplement to your own trading system and do not rely solely on it.