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A few macroeconomic reports are scheduled for Thursday, and the market's attention may once again shift toward geopolitics. In the morning, Germany will release reports on the trade balance, imports, exports, and industrial production. In our view, these are secondary reports unlikely to elicit any market reaction. In the U.S., more important data will be released, including the third estimate of fourth-quarter GDP, personal income and spending, and the core personal consumption expenditure price index. American data have a chance to provoke a reaction, but let's reiterate: the market will once again be waiting for geopolitical news.
During the penultimate trading day of the week, both currency pairs may trade in any direction, as the market continues to react solely to geopolitical news, which is impossible to predict. The euro can be traded today in the range of 1.1655-1.1666, while the British pound can be traded in the range of 1.3403-1.3407. We still do not see any grounds for a strong and prolonged rise of the American currency (considering all factors, not just geopolitics), and the improving geopolitical situation has immediately triggered a collapse in the dollar.
Price levels of support and resistance are levels that serve as targets when opening buys or sells. Take Profit levels can be placed around them.
Red lines represent channels or trend lines that show the current trend and indicate the direction in which it is preferable to trade now.
The MACD indicator (14,22,3) – the histogram and the signal line – is a supporting indicator that can also be used as a source of signals.
Important speeches and reports (always included in the news calendar) can significantly affect the movement of the currency pair. Therefore, during their release, trading should be done with utmost caution, or traders should exit the market to avoid sharp price reversals against the previous movement.
Beginning traders in the forex market should remember that not every trade can be profitable. Developing a clear strategy and effective money management are the keys to long-term trading success.
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