Currency traders make decisions using both technical factors and financial fundamentals. Technical traders use charts,trend lines, support and resistance levels, and numerous patterns andmathematical analyses to identify trading opportunities, whereasfundamentalists predict price movements by interpreting a wide varietyof financial information, including news, government-issued indicatorsand reports, and even rumor.
The most dramatic price movements however, occur when unexpectedevents happen. The event can range from a Central Bank raising domesticinterest rates to the outcome of a political election or even an act ofwar. Nonetheless, more often it is the expectations surrounding anevent that drives the market rather than the event itself.
