FX traders rely on technical analysis to make investment decisions, research shows

11 November 2010

FX traders are using technical analysis as their key strategy when making trades, a new study has revealed.

The second phase results of the CitiFI Pro Forex Trader showed that more than half of respondents use a combination of technical and fundamental strategies.

A further 36 per cent stated that they only use technical analysis to inform their trades.

The majority of traders rely on a narrow range of currency pairs with 65 per cent using between one and five pairs of currencies, the survey revealed.

Further findings showed that EUR/USD was the most common currency pair with more than half of those questioned trading with this combination.

Sanjay Madgavkar, global head of Margin Foreign Exchange trading at Citi, said: “The second phase of the survey results shows that individual traders take a pragmatic, flexible approach to trading strategies.

“Traders mix fundamental and technical strategies and, not surprisingly, most tend to trade a few select currency pairs.”

The survey was undertaken during September of this year and questioned more than 3,000 individuals.

According to CitiFX, the majority of respondents were from either India or the UK.

By Jim Ottewill

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