What to look out for on August 14th? Analysis of fundamental events for beginners
August 14, 2023 12:23 pm
Analysis of Macroeconomic Reports:
There are no significant events or macroeconomic releases for Monday in the European Union, the US, and the UK, even of secondary importance. Therefore, there will be no news for traders to react to during the day. At the start of the European trading session, we noticed a slight increase in the euro and pound, but this movement is just market noise. Moreover, both currency pairs are in a sideways channel, so their movement is sideways either way, whether with or without fundamentals.
Analysis of Fundamental Events:
As for the fundamental events on Monday, there’s absolutely nothing to highlight. No speeches are scheduled for this day. It’s worth noting that previous speeches by Fed officials did not significantly influence the movement of the pairs. Throughout the week, a series of speeches by representatives of the Fed and the ECB will take place, but there’s no guarantee they will influence the movement of both currency pairs.
General Conclusions:
On Monday, the market will be at rest. Of course, movements can occur on any given day, even without a reason, fundamentals, or macroeconomics. But if we’re talking about probabilities, the likelihood is very low today to see even a moderate-strength movement. We will likely see a continuation of the flat trend for both pairs.
Main Rules of the Trading System:
The strength of a signal is determined by the time it takes to form the signal (rebound or overcome a level). The less time required, the stronger the signal.
If two or more trades were opened around a particular level due to false signals, then all subsequent signals from that level should be ignored.
In a flat trend, any pair can generate false signals or not produce them. However, in any case, at the first signs of a flat, it’s better to stop trading.
Trade deals are opened between the beginning of the European and mid-American sessions, by which time all trades should be manually closed.
On a 30-minute timeframe, based on signals from the MACD indicator, one should trade if there is good volatility and a trend confirmed by a trendline or a trend channel.
If two levels are too close to each other (from 5 to 15 points), they should be considered as an area of support or resistance.
What’s on the Charts:
Support and resistance price levels are the levels that serve as targets when opening purchases or sales. Near them, you can place Take Profit levels.
Red lines represent channels or trendlines that reflect the current trend and indicate the preferable trading direction.
MACD Indicator (14, 22, 3) – a histogram and a signal line – is an auxiliary indicator that can also be used as a source of signals.
Important speeches and reports (always found in the news calendar) can significantly influence the movement of a currency pair. Therefore, during their release, it is advisable to trade with utmost caution or exit the market to avoid a sharp price reversal against the preceding movement.
Beginners trading in the Forex market should remember that only some trades can be profitable. A clear strategy and money management are the keys to success in trading over an extended period.
The material has been provided by InstaForex Company – www.instaforex.com
Analysis of Macroeconomic Reports:
There are no significant events or macroeconomic releases for Monday in the European Union, the US, and the UK, even of secondary importance. Therefore, there will be no news for traders to react to during the day. At the start of the European trading session, we noticed a slight increase in the euro and pound, but this movement is just market noise. Moreover, both currency pairs are in a sideways channel, so their movement is sideways either way, whether with or without fundamentals.
Analysis of Fundamental Events:
As for the fundamental events on Monday, there’s absolutely nothing to highlight. No speeches are scheduled for this day. It’s worth noting that previous speeches by Fed officials did not significantly influence the movement of the pairs. Throughout the week, a series of speeches by representatives of the Fed and the ECB will take place, but there’s no guarantee they will influence the movement of both currency pairs.
General Conclusions:
On Monday, the market will be at rest. Of course, movements can occur on any given day, even without a reason, fundamentals, or macroeconomics. But if we’re talking about probabilities, the likelihood is very low today to see even a moderate-strength movement. We will likely see a continuation of the flat trend for both pairs.
Main Rules of the Trading System:
What’s on the Charts:
Support and resistance price levels are the levels that serve as targets when opening purchases or sales. Near them, you can place Take Profit levels.
Red lines represent channels or trendlines that reflect the current trend and indicate the preferable trading direction.
MACD Indicator (14, 22, 3) – a histogram and a signal line – is an auxiliary indicator that can also be used as a source of signals.
Important speeches and reports (always found in the news calendar) can significantly influence the movement of a currency pair. Therefore, during their release, it is advisable to trade with utmost caution or exit the market to avoid a sharp price reversal against the preceding movement.
Beginners trading in the Forex market should remember that only some trades can be profitable. A clear strategy and money management are the keys to success in trading over an extended period.
The material has been provided by InstaForex Company – www.instaforex.com
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