Fundamental Analysis is a type of analysis used to determine the intrinsic value of any investment. The theory is based on the assumption that the price on any asset usually tends to move towards the intrinsic value.

In Forex, government policies, economic conditions and societal factors are used to predict market trends of currency and also evaluate its price. Fundamental analysis plays an important role in determining the long term (usually between a few months to more than one year) investment opportunities in Forex. Business owners use it for forecasting performance of the business and also to make internal decisions.

Since there are too many factors for its evaluation, TradeYourEdge believes that it is not required for short term (between a few hours to a few weeks) trading.