What to pay attention to on September 18th? Analysis of fundamental events for beginners
September 18, 2023 11:22 am
Analysis of macroeconomic reports:
There will be a few macroeconomic events on Monday. On Mondays, we often observe an empty event calendar and low volatility. However, today could be just “one of those days” when volatility and trends are absent. In principle, even in the 30-minute time frame, both pairs move sideways. Moreover, no publications are planned today in Germany, the EU, the UK, or the USA.
Analysis of fundamental events:
Among the fundamental events on Monday, we can highlight the speeches of Luis de Guindos and Fabio Panetta, both representatives of the ECB’s monetary committee. Remember that despite last week’s key rate hike, the market received new signals that this tightening may be the last. In particular, de Guindos stated openly that the rate would no longer rise. Therefore, we expect something other than hawkish rhetoric from Guindos and Panetta today. Any other rhetoric can only create additional pressure on the European currency.
General conclusions:
There won’t be any explicitly important events on Monday. Beginner traders can pay attention to de Guindos’ speech, but most likely, there will be no immediate reaction. The market will take note of the ECB Vice President’s statements and continue to follow its strategy. Therefore, there is no need to expect strong movements today.
Key rules of the trading system:
The strength of the signal is determined by the time it takes to form the signal (bounce or level breach). The shorter the time, the stronger the signal.
If two or more trades based on false signals were opened near a certain level, all subsequent signals from that level should be ignored.
In a flat market, any pair can generate many false signals or not generate them at all. In any case, it is better to stop trading at the first signs of a flat.
Trading positions are opened between the start of the European and mid-American sessions when all trades must be manually closed.
On the 30-minute time frame, trading based on MACD indicator signals is only recommended in the presence of good volatility and a confirmed trend, which is confirmed by the trend line or trend channel.
If two levels are located too close to each other (5 to 15 points), they should be considered as a support or resistance area.
What’s on the charts:
Price support and resistance levels are the targets when opening buy or sell positions. You can place Take Profit levels near them.
Red lines are channels or trend lines that reflect the current trend and show the preferred direction for trading.
The MACD indicator (14, 22, 3) – histogram and 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 greatly influence the movement of currency pairs. Therefore, when they are released, it is advisable to trade with maximum caution or exit the market to avoid a sharp price reversal against the previous movement.
For beginners trading in the forex market, it is important to remember that only some trades can be profitable. Developing a clear strategy and practicing proper money management are the keys to success in trading over the long term.
The material has been provided by InstaForex Company – www.instaforex.com
Analysis of macroeconomic reports:
There will be a few macroeconomic events on Monday. On Mondays, we often observe an empty event calendar and low volatility. However, today could be just “one of those days” when volatility and trends are absent. In principle, even in the 30-minute time frame, both pairs move sideways. Moreover, no publications are planned today in Germany, the EU, the UK, or the USA.
Analysis of fundamental events:
Among the fundamental events on Monday, we can highlight the speeches of Luis de Guindos and Fabio Panetta, both representatives of the ECB’s monetary committee. Remember that despite last week’s key rate hike, the market received new signals that this tightening may be the last. In particular, de Guindos stated openly that the rate would no longer rise. Therefore, we expect something other than hawkish rhetoric from Guindos and Panetta today. Any other rhetoric can only create additional pressure on the European currency.
General conclusions:
There won’t be any explicitly important events on Monday. Beginner traders can pay attention to de Guindos’ speech, but most likely, there will be no immediate reaction. The market will take note of the ECB Vice President’s statements and continue to follow its strategy. Therefore, there is no need to expect strong movements today.
Key rules of the trading system:
What’s on the charts:
Price support and resistance levels are the targets when opening buy or sell positions. You can place Take Profit levels near them.
Red lines are channels or trend lines that reflect the current trend and show the preferred direction for trading.
The MACD indicator (14, 22, 3) – histogram and 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 greatly influence the movement of currency pairs. Therefore, when they are released, it is advisable to trade with maximum caution or exit the market to avoid a sharp price reversal against the previous movement.
For beginners trading in the forex market, it is important to remember that only some trades can be profitable. Developing a clear strategy and practicing proper money management are the keys to success in trading over the long term.
The material has been provided by InstaForex Company – www.instaforex.com
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