There are many ways of influence on the foreign exchange market with market psychology and trader feeling:
Flights to quality: A "flight to quality" can be led with disordering international events and of course with investors seeking a "safe haven". A higher price, for currencies perceived as stronger over their relatively weaker counterparts. In this way it means that there will be a greater demand.
 Long-term trends: It is obviously, that currency markets often move in long-term trends. Although currencies do not have an annual growing season, and they may be physical commodities, business cycles do make themselves felt. So, cycle analysis looks at longer-term price trends that may rise from economic or political trends.
"Buy the rumor, sell the fact": This market platitude is the tendency for the price of a currency to reflect the impact of a particular action before it occurs and also when the expected event comes to pass, react in exactly the opposite direction. Moreover, it can apply to many currency situations. There is no doubt, this may also be referred to as a market being "oversold" or "overbought". As example of the cognitive bias known as anchoring, can also be buying the rumor or selling the fact. It has meaning when investors focus too much on the appropriateness of outside events to currency prices.
Economic numbers: Some reports and numbers take on a talisman-like result. It means the number itself becomes important to market psychology, having an immediate impact on short-term market moves. In this way economic numbers reflect economic policy. "What to watch" can change over time. In recent years, for example, money supply, employment, trade balance figures and inflation numbers have all taken turns in the spotlight.
Technical trading considerations: The amassed price movements in a currency pair such as EUR/USD can form patterns that may be recognized. They also can be used by traders for the purpose of entering and exiting the market. All these may be the reason of leading to short-term fluctuations in price. In order to identify such patterns, price charts are studied by many traders.
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