You can’t ignore interest rates if you want to trade the bigger picture. When you hold a currency trade for more than a day, you’ll notice something called rollover. Tracking the progress of the commanding heights of long term currency trading economy also known as the Fundamentals goes along with the above idea.
Fundamentals are things like employment, interest rates, CPI, and even politics. Technical analysis has many methods when put into practice. If you say technical analysis to one trader, they make thing moving averages, while another market operator may think of MACD if you mention technical trading. You may have the right idea overall, but having technical analysis in your favor can reduce your risk.
Like all forms of analysis, Technical Analysis is subject to misjudgments or biases, which can throw off appropriate investing decisions. If you don’t feel like you have a grasp on what is happening with a currency pair for a day, step back and look at everything on the weekly charts. With these items in mind, you can make strong trading decisions that support positions that you’re holding. You should never be making trades just to make them. You should be able to explain them to a third party if you had to.