Which of the Following Premises Is Technical Analysis,an Approach to Exchange

question 41

Multiple Choice

Which of the following premises is technical analysis,an approach to exchange rate forecasting,based on?

• A)Price and volume data cannot be used to determine past trends.
• B)Econometric models drawn from economic theory are best suited to predict exchange rate movements.
• C)The foreign exchange market is efficient and forward exchange rates are the best predictors of future spot exchange rates.
• D)Previous market trends and waves can be used to predict future market trends and waves.
• E)Since forward exchange rates are the best predictors of future spot rates,it makes no sense to invest in forecasting.

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