06.06.202304:42 Forex Analysis & Reviews: What events may affect market sentiment on June 6? Analysis of fundamental data for beginners

Analysis of macroeconomic reports:

No macro data scheduled for release on Tuesday. Only relatively insignificant reports on retail sales in the European Union and the Construction PMI in the UK. However, take note that this will be the second estimate of the Construction PMI, so there is practically no chance of a market reaction. Only if the actual value deviates significantly from the forecast, which rarely happens in second estimates. As for the retail sales report, it is not particularly important. If traders do react, it will probably be minimal.

Analysis of fundamental events:

There are no scheduled fundamental events for Tuesday, not even ones that are of secondary importance. Both currency pairs are currently in a suspended state as it is not entirely clear which direction they will move in this week. In the medium term, both pairs are expected to resume their decline, while in the short term, the downtrends have been broken, making a rise more likely. This week's fundamental and macroeconomic backdrop is quite weak, so we probably won't see any trends and movement will be weak.

General conclusions:

There will be hardly any important events on Tuesday, so we expect low volatility and weak intraday trend movements. There is a low probability that the market will react to the two reports mentioned earlier, but it is very weak. It is unlikely for us to get an answer about the current trend in the market.

Basic trading rules:

1) The strength of the signal depends on the time period during which the signal was formed (a rebound or a break). The shorter this period, the stronger the signal.

2) If two or more trades were opened at some level following false signals, i.e. those signals that did not lead the price to Take Profit level or the nearest target levels, then any consequent signals near this level should be ignored.

3) During the flat trend, any currency pair may form a lot of false signals or do not produce any signals at all. In any case, the flat trend is not the best condition for trading.

4) Trades are opened in the time period between the beginning of the European session and until the middle of the American one when all deals should be closed manually.

5) We can pay attention to the MACD signals in the 30M time frame only if there is good volatility and a definite trend confirmed by a trend line or a trend channel.

6) If two key levels are too close to each other (about 5-15 pips), then this is a support or resistance area.

How to read charts:

Support and Resistance price levels can serve as targets when buying or selling. You can place Take Profit levels near them.

Red lines are channels or trend lines that display the current trend and show which direction is better to trade.

MACD indicator (14,22,3) is a histogram and a signal line showing when it is better to enter the market when they cross. This indicator is better to be used in combination with trend channels or trend lines.

Important speeches and reports that are always reflected in the economic calendars can greatly influence the movement of a currency pair. Therefore, during such events, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement.

Beginners should remember that every trade cannot be profitable. The development of a reliable strategy and money management are the key to success in trading over a long period of time.