Commander in Pips: Well, we’ve discussed that already. There are a lot of followers on both sides. The major difference is while technical analysis focuses on price action, fundamental analysis focuses on currency valuation. So, short-term traders mostly deal with former, while intermediate and long-term traders, investors with the latter. The better way is to use both of them. Pipruit: What for? Commander in Pips: During important macro data releases, technical strategies very often fail during the market swings that can suddenly happen as large fundamental-based trades are opened and closed. From another point of view, pure fundamental traders miss a lot of short-term opportunities that technical tools could give to them. So if you apply both of them – you will be armed for both cases – aware of scheduled fundamental data releases and what to do with them (remember Stavro’s page again) and applying technical tools to extract profit from short-term price action. I know that probably you will not like it, but we will still discuss in this part of our School the basic macroeconomic factors that strongly affect currencies – economic reports, interest rates and central bank fiscal policy. Pipruit: Aaarrrgghhh… P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon. Note: FPA ranks are earned in the battles against scam, not in the classroom.