Just to qualify - to me technical analysis means interpreting price action and specifically so in areas of support and resistance. I do not use ANY other technical indicators such as MACD, RSI, MA etc. as these are lagging indicators.
I do agree with most of what EcoTrader and some other members have posted here. In saying that, it has been my experience that the methods I use in my technical analysis SOMETIMES predict the move of the market before fundamental analysis shows the direction of the market. An example of this occurred just yesterday morning when I noticed that the JPY pairs were showing some bullish strength (JPY weakening). This was later confirmed by equity indexes mostly turning green leading to a risk-on sentiment.
So, to me fundamental analysis is the cornerstone of understanding which currencies are:
- fundamentally bullish/bearish
- showing bullish/bearish sentiment
I then look for price action in areas of support and resistance where I can trade strong against weak.
If my technical analysis shows a strong conviction trade and there is not yet a good fundamental reason or clear sentiment that agrees with my technical analysis, I take the trade and sometimes the fundamentals and sentiment later confirm my analysis.