The foreign exchange market, i.e. Forex, is a place where institutions from all over the world operate and where currency exchange or trading is carried out. Every time someone appears who wants to sell a certain currency, there is a buyer willing to buy that same currency on the market at the same time. Such transactions are carried out at the lowest cost and the result is that they facilitate foreign trade, help to raise capital in foreign markets and ultimately facilitate the transfer of risk among participants in the foreign exchange market and facilitate speculation related to the value of currencies. Using the exchange rate, it measures the relationship between two currencies, which is determined on the foreign exchange market. The exchange rate affects the prices of exports and imports, which is why it also affects the competitiveness of the economy. Many bubjects operate on the foreign exchange market, and some of the more important ones are: central banks, commercial banks, investment companies, natural persons, etc. Since various contracts are performed on the foreign exchange market, they differ: spot contract, forward contract, futures contract, option contract and currency and foreign exchange swap. Currency pairs are all currencies presented in pairs that differ depending on the trading volume of each pair on a daily basis. The aim of this paper is to show how the foreign exchange market affects exchange rates through supply and demand for individual currencies. The paper analyzes the functioning of the foreign exchange market and its characteristics and deals with the most important terms related to trading on the foreign exchange market. Therefore, changes in currency exchange rates and their impact on the economic well-being of a country will be presented. For the purposes of this paper, technical analysis was used to show the movement of selected currency pairs during a certain period.