With so much talk of things like automated forex trading and the newest type of trading strategy, sometimes people forget that market analysis strategies do not need to be complicated to be successful.

In fact, some of the most base and primal emotions such as fear and greed have a much more profound impact on the market than most people realize.

In order to understand this basic idea, let's take the example of a large storm which can happen frequently in the southern United States during the summer. Typically if a storm like this is bad, it can also mean a drop in the value of the dollar in the foreign exchange markets. But what actually causes this?

It is not the storm itself, but it is the buying and selling of the different market participants that causes the market to move, and this market activity in turn is caused by fear that this event will make the dollar weaker, or greed to profit by selling the dollar.