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There are very few macroeconomic events expected on Tuesday. Nevertheless, there will be some. We will see economic sentiment indices from the ZEW Institute for Germany and the EU in Europe. A slight market reaction is possible in the case of a significant deviation from the forecasted values. More important events will occur in the United Kingdom, where we will have unemployment rates, jobless claims, and wages. The same rule applies here: the greater the deviation from forecasted values, the stronger the market reaction may be. Undoubtedly, British statistics are much more important than European ones, and in the United States, there will be no interesting events today.
It's also worth noting that wages in the United Kingdom continue to grow much faster than the Bank of England expects. The British regulator blames high wages for the slight decline in inflation. People in the UK have more money, so they spend more, and prices rise. However, the Bank of England has recently been signaling a possible end to tightening monetary policy. So, support for the pound today may only come from the jobless claims report, as a significant reduction is expected.
Analysis of Fundamental Events:
There is absolutely nothing to highlight among the fundamental events on Tuesday. Even minor events and speeches are not scheduled for today. Therefore, all attention is on British statistics. As we observed on Monday, the European currency may trade weaker than the pound. The most interesting events of this week are still ahead.
On Tuesday, novice traders should pay attention to the British package of macroeconomic statistics, which will be released in just an hour. These reports may be neutral, but there is a chance that they will surprise the markets. Therefore, the pound may move quite actively in the first half of the day.
Support and resistance levels - targets when opening buy or sell positions. Take Profit levels can be placed near them.
Red lines - channels or trendlines that display the current trend and show which direction is preferable for trading.
MACD indicator (14, 22, 3) - histogram and signal line - an auxiliary indicator that can also be used as a source of signals.
Important speeches and reports (always included in the news calendar) can significantly impact the movement of currency pairs. Therefore, during their release, it is advisable to trade with extreme caution or exit the market to avoid a sharp price reversal against the previous movement.
Forex market beginners should remember that only some trades can be profitable. Developing a clear strategy and proper money management are the keys to success in trading over the long term.
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