Fundamental analysis is the study of the economic performance of a certain country. Since currencies are traded in pairs, you need to analyze the economic condition of the country to speculate the direction of the price movement. Things might be challenging for naïve traders because the concept of economics is really hard. But in real life trading, you can simplify the factors by using basic knowledge of the fundamental analysis. For instance, learn about the impact of interest rate change decision in the Forex market. By following the concept of the interest rate change, you can find the direction of the trend. If a country hikes its interest rate, you can expect a strong bullish rally. On the other hand, cutting down the interest rate means the economic condition of the country is not that great.