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No macroeconomic events on Monday. This week, there are simply no significant factors for the market to react to. However, the European Central Bank meeting is scheduled, followed by the Federal Reserve and Bank of England meetings the week after. Therefore, the market might start anticipating these events based on its own expectations. But it's very difficult to say exactly when they will start to do so. We believe it won't be on Monday as the day will likely portray a static and boring market.
The only noteworthy event is the speech by Bank of England Chief Economist Huw Pill. He previously mentioned that the central bank is leaning towards keeping the interest rate at the maximum level for an extended period rather than further tightening. This is a bearish factor for the British pound, and Pill's rhetoric can be considered dovish. If he insists on the same stance on Monday, the pound may dip a bit lower. However, we don't expect a significant decline. Most likely, the pound will continue its gradual decline amid reduced likelihood of further monetary policy tightening in the UK.
Monday might not provide much for beginners to focus on. Movements in both currency pairs could be very weak, which will directly impact trading. If there are no significant moves again, it will be quite challenging for you to trade. A flat market is also possible.
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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