By: Charley Warady

A lot of attention, among Forex traders, is always drawn to the technical analysis side of Forex trading, and as a result Forex fundamental indicators are often left to the wayside. This is an oversight that could be dangerous to any Forex trader's success. The Forex fundamental indicators are just as important as any support and resistance line, because if the news changes, it doesn't matter what your chart says; the market is going to react.

So many indicators

If you think there are too many things to pay attention to when it comes to your technical analysis and charting, you'll be amazed at the possibilities of Forex fundamental indicators. Right off the bat you can include, macroeconomic, monetary, economical, financial, weather-based news, and so on and so forth. If you paid attention to all these indicators you wouldn't have any time left to trade.

Something new is coming out all the time. There is always a new report, but the problem is that hardly any of all this news will have any impact on the Forex market. It's difficult to decide what is important and what can be ignored.

The important ones

There are a few reports that should not be ignored. These are the main Forex fundamental indicators that can keep your trading in order. The first one being the GDP for the country. The Gross Domestic Product report is the main indicator of the macroeconomic state of any particular country. The report comes out according to a schedule so you don't have to keep checking the news for it. The volatility in the market of the particular pair increases a great deal when these reports come out. Some traders actually choose to close their positions during this time period. You don't want to get caught wrong in these situations.

Interest rates are set by the central banks. These Forex fundamental indicators can prove to be more interesting because the banks can choose to change the interest rates at an undisclosed time. When this happens, the Forex market reacts immediately. It's important to monitor the interest rates to be able to predict the long term results of any Forex pair.

Unemployment rates are the third set of numbers the Forex trader should pay attention to. These numbers directly affect the interest rates which directly affect the Forex market. These figures usually come out weekly and they are strong Forex fundamental indicators that should always be noted.

Stay informed

A well balanced Forex trader will have a much better rate of success than one who is strictly a technical trader or strictly uses Forex fundamental indicators. It's a combination of both that will keep you ahead of the game. The news, when breaking, will ignore the technical analysis. On the same note, sometimes news will break out, but that support or resistance line will hold as if there was no news at all. The key is not to let yourself fall prey to any unnecessary surprises. There will be enough. To stay on top of Forex fundamental indicators is to put one more weapon to work for your Forex trading.