What events may affect market sentiment on June 16? Analysis of fundamental data for beginners
June 16, 2023 4:22 am
Analysis of macroeconomic reports:
Friday promises to be quite boring compared to the last few days. Among the macro data, the only noteworthy reports are the EU inflation data and the University of Michigan Consumer Sentiment Index in the US. Both are clearly of secondary importance. The inflation report will be in its second estimate, which usually does not differ from the first and does not provoke any market reaction, especially considering that the European Central Bank meeting took place on Thursday, making the inflation report less significant.
As for the University of Michigan Consumer Sentiment Index, it can only trigger a market reaction in the event of a significant deviation from the projected value. It is likely that volatility will decrease on Friday, and both currency pairs will experience a slight downward correction.
Analysis of fundamental events:
The only notable fundamental events on Friday are the speeches of Federal Reserve officials Bullard and Waller. Since the Fed meeting already took place this week, and Powell’s rhetoric was quite specific, we don’t expect Bullard (who doesn’t have voting rights this year) and Waller to make any impactful comments that could influence traders’ sentiment. For now, everything points to Friday being uneventful, but there’s still the US session, which typically has decent volatility.
General conclusions:
There are no significant fundamental and macroeconomic events in the US, UK, or the EU on Friday. There is nothing noteworthy to highlight on the calendar. The market may trade with moderate volatility as there have been enough important events this week, and the market may still be digesting them.
Basic trading rules:
1) The strength of the signal depends on the time period during which the signal was formed (a rebound or a break). The shorter this period, the stronger the signal.
2) If two or more trades were opened at some level following false signals, i.e. those signals that did not lead the price to Take Profit level or the nearest target levels, then any consequent signals near this level should be ignored.
3) During the flat trend, any currency pair may form a lot of false signals or do not produce any signals at all. In any case, the flat trend is not the best condition for trading.
4) Trades are opened in the time period between the beginning of the European session and until the middle of the American one when all deals should be closed manually.
5) We can pay attention to the MACD signals in the 30M time frame only if there is good volatility and a definite trend confirmed by a trend line or a trend channel.
6) If two key levels are too close to each other (about 5-15 pips), then this is a support or resistance area.
How to read charts:
Support and Resistance price levels can serve as targets when buying or selling. You can place Take Profit levels near them.
Red lines are channels or trend lines that display the current trend and show which direction is better to trade.
MACD indicator (14,22,3) is a histogram and a signal line showing when it is better to enter the market when they cross. This indicator is better to be used in combination with trend channels or trend lines.
Important speeches and reports that are always reflected in the economic calendars can greatly influence the movement of a currency pair. Therefore, during such events, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement.
Beginners should remember that every trade cannot be profitable. The development of a reliable strategy and money management are the key to success in trading over a long period of time.
The material has been provided by InstaForex Company – www.instaforex.com
Analysis of macroeconomic reports:
Friday promises to be quite boring compared to the last few days. Among the macro data, the only noteworthy reports are the EU inflation data and the University of Michigan Consumer Sentiment Index in the US. Both are clearly of secondary importance. The inflation report will be in its second estimate, which usually does not differ from the first and does not provoke any market reaction, especially considering that the European Central Bank meeting took place on Thursday, making the inflation report less significant.
As for the University of Michigan Consumer Sentiment Index, it can only trigger a market reaction in the event of a significant deviation from the projected value. It is likely that volatility will decrease on Friday, and both currency pairs will experience a slight downward correction.
Analysis of fundamental events:
The only notable fundamental events on Friday are the speeches of Federal Reserve officials Bullard and Waller. Since the Fed meeting already took place this week, and Powell’s rhetoric was quite specific, we don’t expect Bullard (who doesn’t have voting rights this year) and Waller to make any impactful comments that could influence traders’ sentiment. For now, everything points to Friday being uneventful, but there’s still the US session, which typically has decent volatility.
General conclusions:
There are no significant fundamental and macroeconomic events in the US, UK, or the EU on Friday. There is nothing noteworthy to highlight on the calendar. The market may trade with moderate volatility as there have been enough important events this week, and the market may still be digesting them.
Basic trading rules:
1) The strength of the signal depends on the time period during which the signal was formed (a rebound or a break). The shorter this period, the stronger the signal.
2) If two or more trades were opened at some level following false signals, i.e. those signals that did not lead the price to Take Profit level or the nearest target levels, then any consequent signals near this level should be ignored.
3) During the flat trend, any currency pair may form a lot of false signals or do not produce any signals at all. In any case, the flat trend is not the best condition for trading.
4) Trades are opened in the time period between the beginning of the European session and until the middle of the American one when all deals should be closed manually.
5) We can pay attention to the MACD signals in the 30M time frame only if there is good volatility and a definite trend confirmed by a trend line or a trend channel.
6) If two key levels are too close to each other (about 5-15 pips), then this is a support or resistance area.
How to read charts:
Support and Resistance price levels can serve as targets when buying or selling. You can place Take Profit levels near them.
Red lines are channels or trend lines that display the current trend and show which direction is better to trade.
MACD indicator (14,22,3) is a histogram and a signal line showing when it is better to enter the market when they cross. This indicator is better to be used in combination with trend channels or trend lines.
Important speeches and reports that are always reflected in the economic calendars can greatly influence the movement of a currency pair. Therefore, during such events, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement.
Beginners should remember that every trade cannot be profitable. The development of a reliable strategy and money management are the key to success in trading over a long period of time.
The material has been provided by InstaForex Company – www.instaforex.com
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