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Question

What are the three types of analysis?


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Solution

Three types of analysis are:

  • Fundamental Analysis:

It focuses on the various economic factors that affect the value of currencies.

  • Technical Analysis:

It involves assessing the past market behavior with the objective of projecting the future direction of currency prices.

  • Sentiment Analysis:

It involves analyzing the predominant feeling or attitude the participants have about the market.

Hence,fundamental, technical and sentiment are three types of analysis.


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