Traders said that the news-forex news it is confusing and often does not coincide with the movement of the price, so it is not possible to succeed through basic analysis. In fact, this is simply due to the error in using forex news. For example, because economic data limited the green, which means if you buy it certainly successful; in fact, only one data is green only, while other data instead of the red.
we can interpret the forex news correctly for fundamental analysis in the following ways :
Forex News for News-Trading
News Trading is not a fundamental analysis, and fundamental analysis is different with News Trading. The function of forex news in fundamental analysis is a reference for Swing Trading or position trading, not scalping or News Trading.
Traders known professionals usually use basic analysis to assess the strength of the currency in the long run, not as a guide to open positions. For example, if a currency tends to be bullish, then you will set the target higher when open Buy, as well as being stricter and more cautious when open Sell.
Focus on Economic Data
Every day there are a lot of economic data from many countries. In fact, however, under normal market conditions, the trader is required only seven of them, namely: GDP (gross domestic product), consumer inflation (CPI), employment (unemployment rate, non-agricultural wages, etc.), retail sales (Retail Sales), interest rates, Business Sentiment, and the policy of the Central Bank.
Changing one of the data alone is not enough to weaken or strengthen a currency in the long term. If the majority of the data tends to be bearish, then the currency will be lower; and Vice versa.
Trader can create a list of each currency and the seventh of the economic indicators, then simply mark with the word Bearish (the actual data are worse than expected), Bullish (the actual data are better than expected), or Neutral (the actual data correspond to the expectations)