There are two necessary methods in forecasting the currency market, technical analysis and fundamental analysis.
WhileTechnical analysis focuses on the study of price movements, Fundamental analysis focuses on the economic, social and political forces that drive supply and demand. Fundamental analysts study a variety of macroeconomic indicators that can include inflation, interest rates, economic growth rates and unemployment. However, there is not any specific set of beliefs guiding fundamental analysis. There are numerous theories on how to value currencies.