​What exactly does the market price change?

What exactly does the market price change?

In foreign exchange and the wide range of financial markets, the factors that affect the price fluctuations of financial instruments are complicated. However, no matter which market it is, the ultimate determination of price is always the law of balance between supply and demand.

For foreign exchange, commodities and other financial markets, it seems to be affected by macroeconomic data, central bank policy adjustments, geopolitical tensions or market sentiment fluctuations. When the market is in turmoil, traders often try to interpret market trends from the perspective of fundamentals (such as breaking news) or technical aspects (such as breaking through key support/resistance levels), as well as market sentiment.

But in essence, prices and their fluctuations always revolve around supply and demand. Buyers and sellers continue to compete in the market, striving to find a fair and reasonable value for assets. This interaction is almost always happening, and forex traders can keenly capture these subtle changes through market charts, whether it is the evolution of trends or the fluctuations in ranges.