Fundamental analysis involves studying economic indicators, geopolitical events, and central bank policies to understand currency movements. For instance, interest rate decisions by the Federal Reserve or European Central Bank often have a significant impact on USD and EUR pairs. Stay updated with employment reports, GDP figures, and inflation data to anticipate market trends. While technical analysis helps with timing, fundamentals provide the context for long-term direction. A strong understanding of both will give you a comprehensive edge in Forex trading. Always know the story behind the charts before taking a position.