Fear and greed are twin forces that heavily influence the forex market. Fear can cause panic selling, driving prices down rapidly as traders rush to exit positions, fearing further losses. Conversely, greed can lead to irrational exuberance, inflating asset prices beyond their intrinsic value. This can result in bubbles that eventually burst, causing significant losses. Both emotions contribute to market volatility, making it difficult for traders to accurately predict price movements. Managing these emotions is crucial for success in forex trading, as decisions driven by fear or greed often lead to impulsive actions and poor outcomes.