No economic reports set for release on Tuesday, neither in Germany, the European Union, the United States, nor in the United Kingdom. Therefore, after a "boring Monday," we are most likely expecting a "boring Tuesday." At least, that's how it looks right now. The EUR/USD pair was trying to edge up within the correction, and GBP/USD remains within the sideways channel, and that's all there is. We don't expect any significant price changes that would affect the current technical picture.
Overview of fundamental eventsAmong the fundamental events of Tuesday, we can highlight the speeches of three Federal Reserve officials: Austan Goolsbee, Thomas Barkin, and Michelle Bowman. Last week, the US published its inflation report, which showed that annual inflation in July rose slightly from June, the first time in 13 months. Therefore, Goolsbee, Barkin, and Bowman's comments may acquire additional hawkish tones, which, in turn, could support the US currency. However, we are more inclined to believe that they will not share anything important, and there will be no market reaction to these speeches. Especially since Goolsbee and Bowman will speak late in the evening when beginners should already have left the market.
On Tuesday, we are expecting rather boring trades. We don't expect strong movements from either the pound or the euro, but that does not mean that nothing will happen. The market can still trade without being tied to the fundamental and macroeconomic background. However, the day will probably be marked by sideways movement.
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.