http://www.currencynewstrading.com Currency News Trading is dedicated to Forex News Trading and fundamental analysis in general. The goal of CNT is to provide free resources to help you achieve success in trading the currency market.

1. One of the many skills essential in your Forex trading
strategy is the ability to analyze.There are two main types
of Forex analysis which are fundamental analysis and
technical analysis. I will show you the different types of
fundamental analysis trading and hopefully you will learn
how to apply it in your Forex trading strategy. If you are
strictly a technical trader, you will benefit and possibly
increase your profitability by means beyond your current
methods.
In short, Fundamental analysis relies on the news reports:
political and economic factors.Traders that use
fundamental analysis will monitor the various news sources:
TV, radio, and news feeds on the internet; in order to learn
about the political and economic factors that can move the
currency prices. For example, if the US Non-Farm payroll
report is good, it will cause the US dollar to move up. If the
number is disappointing, then the US dollar will drop against
other currencies.
Every major news release has a forecast or consensus figure
determined by economists prior to the news release. If the
actual release number is different from the forecast or
expected figure, the market is surprised and will react to the
release immediately.The bigger the surprise, or deviation, it
will produce bigger reaction. For example, if the upcoming
US ISM Non-Manufacturing PMI has a forecast number of
54.5, and our standard deviation is 3.0.
Fundamental Analysis:TheThree Main WaysTo Forex NewsTrading
Fundamental Analysis: The Three Main Ways To Forex News Trading

2. The actual release comes out as 50.5. Since the actual deviation is 4.0, you would enter a short trade on
USD/JPY, USD/CAD, or USD/CHF or a long trade on GBP/USD,AUD/USD, EUR/USD.We base our entry on market
sentiment and technical trend of the currency pair.
There are three main ways to trade the fundamental analysis: Spike trading, Retracement trading, and Pre News
trading.Trading the spike is the most popular method to trade the fundamental analysis, and is the best known.
Most Forex traders often associate spike trading with fundamental analysis trading.To trade the spike, basically we
wait for the news release to come out. Based on the actual release number we will enter the market immediately if
our expected deviation is hit.
Fundamental Analysis:TheThree Main WaysTo Forex NewsTrading
Fundamental Analysis: The Three Main Ways To Forex News Trading

3. This type of trading requires that you have access
to the news release immediately when it is
released, have a fast reaction to enter a trade, and
have a good broker that allows news trading.
after its release.
To trade the retracement, we wait for the news
release to come out, we wait for the initial spike,
and then we will wait for the market to retrace back
within 10 to 15 pips of the pre-release price.
Sometimes when we have a huge deviation, we can
enter the market at 20 pips from the pre-release
level, but it would be based on your own discretion.
Market will usually retrace within the first 5 to 30
minutes, if a retracement is to take place.
Fundamental Analysis:TheThree Main WaysTo Forex NewsTrading
Fundamental Analysis: The Three Main Ways To Forex News Trading

4. This trading method is particularly easier to enter into a trade, because we avoid the initial volatility of the initial news
release, and most Forex brokers allow this type of news trading.
rates.
Pre News trading, this method of fundamental analysis trading is probably the most advanced and the most difficult to
analyze.
Basically, we base our entry on market sentiment and technical trend of the currency pair and we enter the market five
minutes before the actual news release.You should always enter in the direction of the current trend and only use this
trading method with news releases that won’t change the market trend. For example, you shouldn’t use this method for
the US Non-Farm Payroll,GDP, and CPI; but we can pre-news trade the Retail Sales,Trade balances, and PMI reports.
Fundamental Analysis: The Three Main Ways To Forex News Trading
Fundamental Analysis:TheThree Main WaysTo Forex NewsTrading