On Monday, there will be little macro data. We can only highlight the report on industrial production in Germany for March, which has no chance of being worked out. There is nothing more interesting in the calendar of events. During the week, the Bank of England will hold a meeting in the UK, which may provoke a strong movement, but this is almost the only important event. The euro and the pound continue to trade in an illogical manner, each in their own way. The dollar still cannot show growth, even when there are corresponding fundamental and macroeconomic factors. On the 5-minute chart, this is not very important, but it has been more difficult to trade than usual.
Fundamental events:There is absolutely nothing to highlight in terms of fundamental events on Monday. No important speeches are scheduled during the day. Most likely, the euro will spend Monday staying flat, and the pound may well continue to grow.
General conclusions:On Monday, there are no important events or reports in the UK, the US, or the European Union. There will be nothing for novice traders to focus on. Therefore, you should focus on the "technique" and trading signals on the 5-minute chart. On the 30-minute chart, the signals are now "one-sided", the market is working out only those for buying. It is difficult to say how long both currencies will continue to rise for no reason. The market is bullish and does not intend to change anything.
Basic rules of the trading system:1) The strength of the signal is determined by the time it took the signal to form (a rebound or a breakout of the level). The quicker it is formed, the stronger the signal is.
2) If two or more positions were opened near a certain level based on a false signal (which did not trigger a Take Profit or test the nearest target level), then all subsequent signals at this level should be ignored.
3) When trading flat, a pair can form multiple false signals or not form them at all. In any case, it is better to stop trading at the first sign of a flat movement.
4) Trades should be opened in the period between the start of the European session and the middle of the US trading hours when all positions must be closed manually.
5) You can trade using signals from the MACD indicator on the 30-minute time frame only amid strong volatility and a clear trend that should be confirmed by a trendline or a trend channel.
6) If two levels are located too close to each other (from 5 to 15 pips), they should be considered support and resistance levels.
On the chart:Support and Resistance levels are the levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.
Red lines are channels or trend lines that display the current trend and show in which direction it is better to trade now.
The MACD indicator (14, 22, and 3) consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend patterns (channels and trendlines).
Important announcements and economic reports that can be found on the economic calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommend trading as carefully as possible or exiting the market in order to avoid sharp price fluctuations.
Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management is the key to success in trading over a long period of time.