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On Wednesday, several intriguing reports are scheduled for release in the US, EU, and the UK. Germany will release the preliminary value for inflation in August. It's worth noting that August isn't over yet, but the first estimate always has a resonant significance for the market. If we see a deviation from the projected value of 6%, then the report might move the market. Only secondary data will be published in the UK and the European Union, but there are notable events in the US.
The first report will be the Q2 GDP in its second estimate. The second estimate is always the least interesting since it's neither the first nor the final assessment. Hence, regardless of the value, we don't expect a market reaction. Moreover, the report's value is unlikely to deviate from the first estimate or forecast (2.4%). The ADP report on the change in the number of workers in the private sector - an analog of NonFarm Payrolls - will also be released. This report holds less significance than NonFarm Payrolls, but in case of a significant deviation from the forecast (which happens quite often), the market might react.
There's nothing particular to highlight from Wednesday's fundamental events. No significant speeches will occur throughout the day. From time to time, central bank officials speak, but they rarely share important information, which only has a background influence on market sentiment.
On Wednesday, beginners should focus on German inflation and the US ADP report. Both have a good chance of influencing the movement of currency pairs at the time. It is impossible to predict their actual values, so one should react based on the facts. In general, both currency pairs might continue their correction this week.
Support 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.
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