Fundamental analysis involves looking at the impact of certain economic, political and social factors and their influence on the value of a particular currency. This includes things like interest rate announcements, unemployment data, GDP data etc. On a grander scale, it also looks at the impact that global economics has on the forex market too.
Fundamental analysis is all about looking at the long-term factors that influence the direction of a particular currency. It does not take into account short-term price fluctuations.
IMPORTANT: The strongest entry/exit signals occur when important fundamental and technical signals coincide.
With the right training and background knowledge, you will be able to see for yourself the benefits of learning both methods for analysing the currency market. It’s important to have a strong grasp of both forms of market analysis before giving preference to one over the other.