Technical Analysis is the study and interpretation of price charts.
Studying price charts works very well because one chart shows the data for two currencies (because all currencies are traded in pairs) so there is less need to absorb information from various sources regarding the two different economies (as you would in your fundamental analysis) which makes things much simpler.
This is one reason why technical trading is so popular with traders because all you need are the price charts in front of you.
The other great thing about technical trading is that the concepts are pretty much universal from large speculative institutions right down to the guy with $500 in his micro account, and the tools are pretty similar too. This can really help to reduce the gulf between these large players who have teams of analysts and traders working around the clock and yourself.
The basic premise of technical analysis is quite simple, traders look for certain patterns that price makes and from these patterns you can get a very good idea of the really important factors such as direction for the rest of that day.
Technical analysis is covered in more detail in the free advanced course.
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