The single most important element of technical analysis is that future exchange rates are based on the current exchange rate.

Question

Quizplus · Accepted Answer

The principle of technical analysis is based on the idea that future exchange rates can be predicted by analyzing the historical behavior of currency prices and market trends. The current exchange rate forms the foundation of this analysis as it serves as a starting point for identifying patterns and trends that may emerge over time. Therefore, the statement that future exchange rates are based on the current exchange rate is true according to the principles of technical analysis.

The Single Most Important Element of Technical Analysis Is That