Forex analysis is the technique of predicting which currency in a pair will be stronger over a particular time period. Forex traders may then use this knowledge to buy currencies that they feel will rise in value and sell currencies that they believe will decrease in value. Forex traders will use a range of sources to help them create projections. Fundamental factors include the state of a country's economy, the price of vital commodities such as oil, and any major news events affecting world economics. Technical aspects, such as the currency's recent price history in respect to historical averages, are also taken into account.

Forex market analysis involves evaluating currency pairs to make informed trading decisions. It is broadly categorized into fundamental analysis and technical analysis. Fundamental analysis examines macroeconomic factors like interest rates, inflation, GDP, and geopolitical events to assess a currency's intrinsic value. For example, a strong economy typically strengthens its currency. Technical analysis, on the other hand, focuses on historical price data, charts, and indicators (e.g., moving averages, RSI) to identify trends and patterns. Traders also use sentiment analysis to gauge market psychology and positioning. Combining these methods helps traders predict price movements, manage risk, and identify entry/exit points. Successful analysis requires staying updated on global news, economic data releases, and market trends to navigate the highly volatile forex market effectively.