Analysis of macro data:
There will be no macro data on Tuesday. If on Monday, there was a report on industrial production in Germany, which traders ignored even though its value was quite unexpected, then on Tuesday, there will be nothing at all. Therefore, there is a high probability that the flat will be preserved for both currency pairs. Of course, the market trades actively not only when there is a fundamental and macroeconomic background. Strong movement is possible at any moment because news can be unexpected and unpredictable. For example, another bank in America may burst, and the dollar may immediately drop, as it has been doing in the last two months. Therefore, you shouldn't treat Tuesday as a day off.
Fundamental events:
There is absolutely nothing to highlight from the fundamental events of Tuesday. No important speeches or other events are planned during the day. Most likely, the euro will spend the day in a low-volatility flat, and the pound may try to extend its sluggish growth.
General conclusions:
On Tuesday, there will be virtually no important events or reports in the UK, the US, or the European Union. There will be nothing for novice traders to focus on. So now 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," with the market only working on buy signals. It is difficult to say how long the euro and pound will continue to rise. The market is set in a bullish mood and does not intend to change anything yet. If weak and sideways movements are observed from the early morning, it may not be worth entering the market at all. Or do so only based on strong and clear signals.
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.
