To say that fundamental analysis has a greater reliability and effectiveness over technical analysis would be like saying that orange is better than apple or vice versa. 

For a trader whose primary activity is to take stands in the open market and squaring off the deal in the same trading day or in the next few trading cycles it would make immense sense to him to undertake a technical analysis of the market. It is because, only technical analysis (further referred to as TA in the article) would indicate the positions that might be building up in the market. TA would also indicate if there is any likely trend that is getting emulated and immediate short term course that the markets might be heading for. Traditionally TA also helps in understanding the price equations that would be unfolding in the next few trading days. 

Fundamental analysis, to a similar trader, would also be beneficial but for a longer term of trading cycles. Fundamental analysis (further referred to as FA in the article) would indicate to him (trader) the underlining basic strengths of the forex rates rather than the immediate movements of the currency or the market as a whole. FA would throw up information on the longer term sustainability of the forex pricing of the currency or the market. This is because FA analysis inherently takes into considerations factors such as the economy of the state, the political scenario, the GDP growth rate, the balance of payments in the national budgeting, flow of foreign direct investment in the country, the prevailing interest rates, the rate of inflation and many such macro and micro economic factors. 

Technical analysis on the other hand would take into consideration factors like the trading volumes, the offer-bid gap, the long and short positions that various market participants have taken, movement of the particular currency in the last few trading days and other trade specific micro factors of similar nature. 

FA is more about the current set of factors affecting the future outcomes whereas TA is more about the immediate past and the present set of factors affecting the immediate future. Both the forms of analysis have their own applications and effectiveness.

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