The relationship between technical aspects and fundamentals of foreign exchange transactions should be considered together in the analysis. At this point, investors need to make a good match between the two, and then choose the next specific operation method.
For foreign exchange traders, what matters is not the meaning of news, news, policies and economic data, but the reaction of market trends to them (the opposite reaction is the clearest signal). For example, for a negative policy, the market can be understood as real negative, and it can also be understood as negative or insufficient, but it will rise sharply. For another example, if the Fed raises interest rates and the dollar falls, it shows that the market is disappointed with raising interest rates. The market interprets this news as bad and should short the dollar.
Once the long-term trend is formed, it must be the result of the comprehensive action of various fundamental factors behind it. These factors in foreign exchange transactions cannot change suddenly in a short period of time, so the trend has a strong inertia. If a policy or event that is not conducive to the trend direction is suddenly introduced one day, resulting in a sharp rebound in prices on the same day or the next day, it will be a good opportunity to open a position, because the probability that a single policy or event can change the trend is very small.
When analyzing the technical and fundamental aspects of foreign exchange transactions, we should pay attention to the market's reaction to them and the mutual changes and influences between them, so as to ensure that the transactions will not be lost in the analysis.