Examples of Forex trading with Fundamental Analysis 2024

Alright, maybe you know something about fundamentals.

Maybe you don’t.

But, you are interested in seeing some real examples of trades done with fundamental analysis.

Right?

I love that.

Because it shows that you have a real interest in the subject.

And that’s amazing.

But wait…

I don’t want this article to be an average list of some random trades.

No.

I want to make this different from what you can find out there.

So the idea is this:

1. The first thing is to illustrate and go through some interesting trade examples to see how they were done.
2. Then we talk about where you can find the best insights to follow.
3. And after that, I will show you how this trading style makes you a better trader.

Ok.

Sounds like an interesting one to read?

Perfect.

Real trade examples in Forex with fundamental analysis:

I really believe that learning from the experience of other traders is the best way to progress in your trading.

For real.

And for that reason, I like to analyze the trades of highly professional traders to see how they do their thing.

Do you get what I’m saying?

If you do, great.

If you don’t…

Great anyway because I’m about to show you step by step what I mean.

Cool?

Ok.

Let me show you three real trade examples:

1. A trade based on monetary policy and central banks.
2. A trade based on yield differentials between currencies.
3. And one that combines both technicals and fundamentals.

Alright.

Enough with the theory.

Let’s get to the practical stuff…

Example of a trade with monetary policy and central banks:

Now, look at this trade insight down below…

Example of indepth trade insight

This is from a very insightful thread about fundamental analysis that we can use to analyze some trades for this article.

With that said…

Notice the type of words and references used.

Topics like:

1. Central banks.
2. Interest rates.
3. Dovish and hawkish.

This is the VERY base of fundamental analysis in Forex trading.

What do I mean?

I mean this trading style has at the core the understanding of these subjects:

1. Monetary policy and central banks which means interest rates.
2. The right interpretation of central banks’ communication.
3. Forward guidance.

Ok.

Let’s take it step by step.

First, the context is established:

The fundamental context is established

And…

More context

Perfect.

With the trade idea established, what’s the next step?

Well…

It needs to be applied to a real trading environment.

So, the plan is laid out on a chart:

Technical analysis on the chart to find the trade entry

And there you go.

That’s a trade with at the core of it the analysis of central banks’ monetary policy and forward guidance.

And I know.

Easier said than done.

This probably is a bit more confusing than you expected.

I get it.

But that was just an example.

If you don’t know much about the subject it’s normal for it to be confusing.

Keep on cultivating that experience to build your knowledge and macro vocabulary.

How can you do that?

Just follow the best websites for Forex fundamentals to build your trading experience.

But now let me show you the next one…

Example of a trade using yield differentials:

Wait.

What even are yields?

Definition of bond yields

Is it something that you need to know about?

Well, yes.

If you truly want to understand the fundamentals of a currency in all its aspects you have to understand what currency yields are.

Above I’ve shown you a classic definition.

But now let’s see this in action with a real trade:

Yield differential used to generate a trade idea

I find that super fascinating.

The fact that currency pairs are inherently driven by their underlying yields is something that I find VERY interesting.

Because very few traders know about that.

Right?

Yes, and that’s exactly why it gets interesting.

Now…

Let me show you another one:

Another example of yield differentials in action

Alright.

I can go on and on.

But in simple…

This is another instance of how this trading style is used in Forex trading to generate professional trade ideas.

So if you want to dive a bit deeper into the subject of yield differentials and their applications then:

Educational content on Investopedia

Or on Youtube as well, you can find plenty of content on the subject there.

With that said.

Let’s get to the third example…

Example of trade that combines both fundamentals and technicals:

This is where it gets VERY practical and useful.

Because this type of analysis by itself is useful.

Yes.

But when combined with technicals that’s when you get the most accurate trades.

Curious?

Awesome.

Let me show you how it’s done.

Ok.

Let’s take this trade for instance:

Example of a trade that combines both fundamentals and technicals

Notice that both macro and technical concepts are applied.

Right?

Yes.

And more specifically it’s about using the macro context to understand in which direction the market is likely to move.

And then using technicals to get a trade in that direction.

This post explains it amazingly well:

The right way to combine technical and fundamental analysis together

Very well said.

I agree with that a lot.

When you see some price action like a pin bar, an engulfing candle, or whatever.

The question to ask is what actually caused that price action to form.

That gives you the right context to understand and evaluate correctly whether you should take a trade according to what the price action is showing or not.

Cool?

Ok.

Now I know what you are interested in:

I’ve shown you examples of some trades from BeSomebodyFX.

And also Miad Kasravi.

Very insightful stuff.

And of course.

Now you want to know where you can find some of these insights so that you can follow them yourself.

Great.

Let’s talk about that…

Where to find the best fundamental analysis for Forex trading:

So, first of all.

You have already seen two professional sources for insightful trade ideas.

The ones used for the trade examples.

Those two are already a VERY good starting point for you to get the best kind of insights for your trading.

So, BeSomebodyFX on Telegram for these kinds of amazing trade ideas:

Fundamental insight on Telegram from BeSomebodyFX

And Miad Kasravi on Twitter, now called X, for these insightful recommendations:

Trade analysis from Miad Kasravi

Good stuff.

These two by far are already enough.

You get both reliable Forex signals and insightful content related to trading in general.

Good stuff.

But with that said.

What else is there?

Is there any other place to find some good fundamental insights for your trading?

Yes.

Ever heard of Bloomberg market surveillance?

They have some pretty useful content there.

You can find them on Youtube…

Bloomberg market surveillance on Youtube

They are great at keeping you up to date with all that matters across markets.

Bloomberg market surveillance

So…

There are many ways for you to regularly and consistently keep track of market developments.

You just have to follow the ones you like the most.

With that said.

How fundamental analysis makes you a better Forex trader:

Now, with all this said.

The purpose of this article is NOT to just showcase some trade examples.

No.

There’s more to it.

The key point that you should take away from this article is that you can learn from following other professional traders.

And you probably know that.

But you don’t apply that concretely.

What I mean is that you can look at an experienced trader in action and you can see:

1. How to use the macro context to make better trades.
2. How to combine fundamentals with technicals correctly.
3. And how to adapt to changing market environments.

And I can go on and on.

The point is:

By studying the trades of other professional traders, you can gain insights, ideas, and confidence for your own trading.

You can also discover some advanced strategies and methods to trade fundamentals that can take your trading to the next level.

And that’s how this article can be useful for you.

Not just to show you some cool trades.

But to show you how it’s REALLY done and how USEFUL it is to follow professional traders.

Makes sense?

Yes.

And that’s exactly how you progressively get better and better in your trading.