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Fundamental analysis is a study of the economic and political conditions of countries where currencies are traded on the foreign exchange market. The purpose of fundamentalist analysis is to assess the possible impact of political and economic events on currency price movements. As the commodity in the foreign exchange market is the currency, the “quality” of the commodity depends on the economic conditions of the country of origin.
Before entering a position, you need to know in advance when to exit the market. Traders will not hold positions indefinitely, that’s for sure. Knowing how long you want to maintain your position will determine your exit point and price. If you decide to hold a position for a week, then your profit target will naturally be greater than your goal of holding on to a few hours, because, given the longer period, you may want the price to rise further.