Even As a Technical Trader You Shouldn't Completely Ignore the Fundamentals

We love using technical analysis to trade Forex. Even though we consider ourselves to be primarily technical traders, we would never completely ignore the fundamentals driving the price of any currency pair.

Let's take a look at a quick example of some recent activity regarding Russian currency. It's no news to anyone that the ruble took a big hit in 2014. The currency lost approximately 50% of its value during the year.

The Russian government was trying desperately to prop up the value of their currency and there were even Russian banks offering interest rates as high as 17%.

The basic fundamental reasons cited for the demise of the ruble were a combination of cheap oil prices as well as economic sanctions that have been imposed upon Russia after its invasion of the Ukraine.

Whatever the fundamental underlying reasons the ruble got hammered. If you had been trading technical lead told you to go long in some effort to enter on a short-term pullback you would've learned a very important lesson about ignoring the fundamentals.

The moral of the story is simple. Completely ignoring the fundamentals can be expensive for anyone looking to profit in Forex trading.