There are two analysis models applied to market movement forecasts: fundamental, and technical (the chart study of past behavior of currencies prices).

Fundamental analysis examines economic, political and social indicators to predict the economic health of a nation. Currencies can be viewed as the international representative of national economies; it follows, therefore, that economic health is an important component in currency valuation. The fundamental analyst constructs forecast models based on a myriad of different indicators to predict future currency movement.

This section outlines a number of theories and indicators�as well as political dimensions and monetary considerations�that are important in constructing Forex forecast models.