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October 12, 2025 8 mins
Fundamentals vs Technicals – Which Drives Markets  Podcast: Find out more about Blueberry Markets – Click Here Find out more about my Online Video Forex Course Book a Call with Andrew or one of his team now Click Here to Attend my Free Masterclass #609: Fundamentals vs Technicals – Which Drives Markets In this video: 00:28 – Technical or Fundamental trading?. 01:05 – Example this week of why I am a technical trader. 02:40 – Interest rate announcement out of New Zealand. 04:07 – We profited from 5 Daily chart trades. 04:25 – Monthly Sell on the NZD/USD also hit the profit target. 05:44 – Brand New Forex Masterclass. 05:57 – Free 1 hour live Q&A Webinar. 07:06 – Blueberry Markets as a Forex Broker. 07:50 – Like, Share and Subscribe Which came first? The chicken or the egg? Or in trading terms, fundamentals or technicals? Who's the winner, and which came first, and which is most important? Let's talk about that more right now. Hey traders! It's Andrew Mitcham here, the owner of The Forex Trading Coach, with video and podcast number 609. Technical or Fundamental trading? So today really is the chicken-or-the-egg question. And as traders we look at all the technical charts, or we look at fundamental news events, or some people have a combination of both. Now, I'm certainly a technical trader. I'm going to share with you why I think that is the most important, but also I'm not saying that news is not important. It's just I think you need to develop, as a person, as a trader, and find out which one is best for you and why. Or maybe the answer is a combination of both. But I'm a technical trader. Example this week of why I am a technical trader. Now, here's a classic example. On Wednesday morning, my time, we were looking at the daily charts at the close of the Tuesday daily candle. And we do this every day, and we've done this for the past 16 years. So at the close of a daily candle at 5 p.m. New York time, we analyze the charts and we look at trades based off the daily charts for the new day. And if you go and look at the close of Tuesday's daily candle, you would see many New Zealand-related pairs all showing massive NZD weakness. And we identified five trades as specific trades based off the daily charts, based on that NZD weakness. And they were the NZD/USD, NZD/CAD, NZD/CHY, AUD/NZD, and GBP/NZD. Now, the last two have been Australian and Pound against the New Zealand. They were buys. The first three were sells, all looking for NZD weakness. So that's the technicals. We saw room to move for the profit target. We saw safety in our stop loss. And for what I look at and what we teach, we had everything setting up there as five excellent, high-quality trades off the daily charts. Now we come back to the chicken and the egg, and we come back to what was actually happening and why. Interest rate announcement out of New Zealand. Well, four hours into the new day, out of New Zealand here, we had interest rate announcements, and they were expected to drop the interest rate by a cut of 0.25, or 25 points. That was what Forex Factory and all the news sites were expecting. However, as a technical trader, I looked at the charts and not only did I see the New Zealand weakening, but I saw massive weakness coming. And for me, when I looked at that news event, I thought, I think this is going to be a bigger cut than expected. Now, whether it is or isn't doesn't really matter. It's more the fact that I could see maybe that 0.25 basis points already probably factored into the market, but the market was showing me a bigger drop was likely to come and therefore a bigger cut than what the economists were expecting. And that's exactly what we saw. So when it comes to the fundamentals, we did see a half-percent cut, which is a massive cut from 2.5 down to 2. You know, that's a big, big cut, and it's to stimulate the economy and, you know, things like that.
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Episode Transcript

Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Which came first, the chicken or the egg, or in
trading terms, fundamentals or technicals, who's the winner and which
came first and which is most important? Let's talk about
that and more right now, Hey, traders, is Andrew mitcham here,

(00:24):
the owner of the Forest Trading Coach with video and
podcast number six hundred and nine.

Speaker 2 (00:28):
So today really is the chicken or the egg question.

Speaker 1 (00:32):
And as traders, we look at either technical charts or
we look at fundamental news events, or some people have
a combination of both.

Speaker 2 (00:43):
Now I'm certainly a technical trader.

Speaker 1 (00:45):
I'm going to share with you why I think that
is the most important.

Speaker 2 (00:49):
But also I'm not saying that news is not important.

Speaker 1 (00:53):
It's just I think you need to develop as a
person as a trader and find out which one one
is best for you and why, or maybe the answer
is a combination of both. But I'm a technical trader.
Now here's a classic example. On Wednesday morning my time,

(01:13):
we were looking at the daily charts at the close
of the Tuesday Daily Candle, and we do this every
day and we've done this for the past sixteen years.
So at the close of a daily candle at five pm,
New York time, we analyze the charts and we look
at trades based off the daily charts for the new day. Now,

(01:36):
if you go and look at the close of Tuesday's
daily candle, you would see many New Zealand related pairs
all showing massive New Zealand dollar weakness. And we identified
five trades as specific trades based off the daily charts

(01:56):
or based on that New Zealand weakness, and they were
the News US dollar, the New Zealand Canadian, the New
Zealand Chinese yuan, the Australian New Zealand and the Pan
New Zealand. Now the last two been Australian and pound
against the New Zealand. They were buyas the first three
were sells, all looking for New Zealand dollar weakness. So

(02:19):
that's the technicals. We saw room to move for the
profit target, We saw safety in our stop loss and
for what I look at and what we teach, we
had everything setting up there as five excellent, high quality
traits off the daily chants. Now we come back to
the chicken in the egg and we come back to
what was actually happening and why Well, four hours into

(02:42):
the new day, out of New Zealand here we had
interest rate announcements and they're expected to drop the interest
rate by a cut of zero point twenty five or
twenty five points. That was what Forest Factory and all
the new sites were expecting. However, as a technical trader,

(03:04):
I looked at the charts and not only did I
see the New Zealand weakening, but I saw.

Speaker 2 (03:08):
Massive weakness coming.

Speaker 1 (03:11):
And for me, when I looked at that news event,
I thought, I think this is going to be a
bigger cut than expected. Now, whether it is or isn't,
it doesn't really, you know, matter. It's more the fact
that I could see maybe that point two five basis
points already probably factored into the market, but the market
was showing me a bigger drop was likely to come

(03:33):
and therefore a bigger cut than what the economists were expecting.
And that's exactly what we saw. So when it comes
to the fundamentals, we did see a half percent cut,
which is a massive cut from two point five down
to two you know, so that's a big, big cut,

(03:53):
and it's to stimulate the economy and you know, things
like that. So we saw a like a double of
the expected cut expected twenty five points. We got fifty
and we profited from those trades. We put those five
trades on. All five were profitable trades. And again it

(04:15):
comes back to why I'm a technical trader, because we
could see on the charts this already happening, this likely
move already happening, and you take it one step further
and on the monthly charts. We also hit our profit
target on our August twenty twenty five monthly chart, which

(04:35):
was also a sell on the New Zealand dollar US dollar. Now,
if you go back and watch my trip where we
spent four weeks traveling around America, you would see that
at the beginning of August, I actually made a video
and I said, look, I'm taking a cell trade based
on the monthly chart. So looking at the close of
the July twenty twenty five monthly chart, so beginning of August,

(04:59):
we had a cell setting up on the monthly chart,
like the biggest timeframe that we can trade. So my
bias has already been New Zealand US dollar weakness. Anyway,
fast forward through to October, our monthly chart has now
hit the profit target and our daily bias, which was
looking at sell positions or shortening the new Zealand dollar

(05:22):
was in the same direction as the Likely News and
in the same direction as our bigger picture technical monthly
chart also on the new Zealand dollar US dollar. So
you put the whole lot together and you can see
how we analyze the charts, what we're looking for, and
why this works so well once you understand what you're
looking for and how to do this.

Speaker 2 (05:43):
So if you'd like to find out more about how
we do this, I have.

Speaker 1 (05:46):
A brand new fifteen minute sorry no, it's a thirty
minute masterclass which you can jump on too up at
link here. It's been released about two weeks ago and
on next week, so probably a day or two after
you get to see this video and listen to the podcast,
I'm going to be holding a live one hour webinar
where anybody can attend. There is going to be nothing

(06:08):
pre made, there is nothing to sell or talk about
in terms of the course. It's purely going to be
there to help you to come on board live if
you can, or ask questions in advance, and it's going
to be an open Q and A.

Speaker 2 (06:23):
Ask me anything about how.

Speaker 1 (06:25):
I trade or trading in general, or lot sizing, or
whether it should be fundamentals or technicals, any question you have,
and I can give you my twenty years of full
time trading knowledge and experience and some suggestions to help you.
If you'd like to come on board with that. It's
a one hour session. I'll put a linked here so
you can register as well. You will need to register

(06:46):
to jump on that. Hopefully you can get the live.
If not, maybe registered and watch the recording. But any
question to have, any topic you would like me to
cover that's going to help you as a trader, send
an email to me or or leave a comment here
my email address Andrew at the Forest Trading Coach dot com,
or leave a comment somewhere here below. If you're out

(07:07):
there looking for a really, really good broke, I can
highly recommend Blueberry Markets. Pretty much anybody around the world
apart from the US and a few other countries, can
open accounts with them.

Speaker 2 (07:17):
I use the Empty five platform. Lots and lots of markets.

Speaker 1 (07:22):
You know, things like the New Zealand Chinese one you
know we took just yesterday. You know, some brokers don't
offer pay us like that. So lots of different currencies,
lots of exotics, a swell now and cryptos metals, commodities
in disease, et cetera. Not only that, great people and fast,

(07:44):
great service as well.

Speaker 2 (07:45):
So that's Blueberry Markets. I'll put a link to them
as well. So that's it for now.

Speaker 1 (07:49):
Try to get onto my webinar, the one hour Q
and A session and also make sure you jump onto
that thirty minute on demand master class as well.

Speaker 2 (07:59):
So we're at the trading.

Speaker 1 (08:00):
We're doing well, we're helping people, have been doing this
for like sixteen years now. Check out our reviews also
on Forest Peace Army to see how we're making a
difference in the forest world and any questions of course,
please leave comments below. This is Andrew Mitcham here from
the Forest Training Coach I see this time next week.

Speaker 2 (08:18):
By for now,
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