Make a comment on classmate post Technical analysis is a technique that involves a review of previous price movements and chart patterns in order to make forecasts about future changes in exchange rates. Fundamentalists try to identify currencies that are both low and high in value and estimate long-term changes in exchange rates by reviewing some factors that drive supply and demand. Econometric models use statistical techniques to estimate fluctuations in exchange rates using historical data and economic variables. Expert opinions are the estimates made with the knowledge and expertise of analysts. They use their perceptions and judgment to make predictions on exchange rates. Market sentiment is the way to describe the mood of traders and investors regarding the possible fluctuations in exchange rates