Several economic reports are set for release on Friday. The most important ones will be the UK GDP and industrial production reports. However, we want to warn you right away that the British GDP report is not like the US inflation data. Deviating from the forecasted value may be marginal or there could be none at all. And if it remains unchanged, the market will not react. The same thing applies to the industrial production data.
The US will only release secondary data, such as the producer price index and the University of Michigan consumer sentiment index. These reports can only influence trading if their values are significantly resonant, which we do not expect. Therefore, Friday could be quite uneventful, with the main hope resting on the UK GDP. Both currency pairs continue to trade within sideways channels, and we don't see compelling reasons to break out of them.
Overview of fundamental eventsThere is absolutely nothing significant in terms of fundamental events on Friday. No speeches are scheduled for this day. Take note that all the previous speeches by Federal Reserve officials also didn't have a significant impact on the currency pairs' movements.
On Friday, the market will undoubtedly focus on the UK's economic growth report for the second quarter, and all other data will be secondary of importance. It's quite possible that we might not see any reaction to any of the reports. If so, the sideways movements will likely persist. However, breaking out of these channels could serve as a trigger for purely technical resumption of trend movements.
Main rules of the trading system:The strength of the signal is calculated by the time it took to form the signal (bounce/drop or overcoming the level). The less time it took, the stronger the signal.If two or more trades were opened near a certain level due to false signals, all subsequent signals from this level should be ignored.In a flat market, any currency pair can generate a lot of false signals or not generate them at all. But in any case, as soon as the first signs of a flat market are detected, it is better to stop trading.Trades are opened in the time interval between the beginning of the European session and the middle of the American one when all trades must be closed manually.On the 30-minute timeframe, you can trade based on MACD signals only on the condition of good volatility and provided that a trend is confirmed by the trend line or a trend channel.If two levels are located too close to each other (from 5 to 15 points), they should be considered as an area of support or resistance.Comments on chartsSupport and resistance levels are levels that serve as targets when opening long or short positions. Take Profit orders can be placed around them.
Red lines are channels or trend lines that display the current trend and show which direction is preferable for trading now.
The MACD (14,22,3) indicator, both 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 significantly influence the movement of a currency pair. Therefore, during their release, it is recommended to trade with utmost caution or to exit the market to avoid a sharp price reversal against the previous movement.
Beginners trading in the forex market should remember that not every trade can be profitable. Developing a clear strategy and money management is the key to success in trading over a long period of time.