Forex traders usually examine the changes in the forex market to determine whether to buy or sell a currency pair. Forex analysis could be technical in nature, using charting tools, or fundamental, using economic indicators and/or news-based events.
 
Fundamental Analysis

Fundamental analysis evaluates the market by examining economic, financial and other qualitative and quantitative factors. It is based on the study of data that can affect the market including large-scale factors (like the global economy and industry conditions) but also specific factors (like the financial condition and management of companies).
 
Technical Analysis

Technical analyses are based on the past performances of the markets. It consists in analyzing the statistics generated by the market activities, such as past prices and volumes, to predict market evolution. Economic charts are widely used in technical analysis to forecast price movements.