Macroeconomic Report Overview:

No macroeconomic publications are scheduled for Tuesday. However, it cannot be said that the market was idle on Monday despite the lack of key macroeconomic events—there was still enough news for the market to respond to. The U.S. dollar tended to strengthen during the day, which somewhat contradicted the nature of the economic data and developments. We believe that the euro and the pound are currently undergoing another mild technical correction, nothing more.

Fundamental Events Analysis:

There are no noteworthy fundamental events on Tuesday. Over the past two weeks, there have been many speeches by top officials of the ECB, the Federal Reserve, and even the Bank of England. However, very few significant statements were made, and they had little to no impact on overall market sentiment. The ECB, the Fed, and the Bank of England all express concern about rising inflation, and central banks collectively worry about economic uncertainty due to Donald Trump's tariffs.

The trade war remains the most important issue for the market, and there are still no signs of resolution. In fact, tensions may escalate further in the near term, as Trump has managed to secure only 3 trade deals out of 75 countries. Moreover, it's unclear what there is to be optimistic about when all tariffs introduced by Trump remain in place. The situation with China remains unclear: reports of a deal have circulated, but no details have been disclosed. As for the Vietnam deal, it's hard to say whether it will have any tangible impact. Yesterday, it was also reported that tariffs were raised for Japan and South Korea, and further increases could soon affect the European Union as well.

General Conclusions:

During the second trading day of the new week, both currency pairs may show very low activity, as there are no scheduled major events or data releases. At the same time, the market already has some reasons to sell the dollar following the announcement of higher tariffs on Japan and South Korea.

Basic Rules of the Trading System:

1. Signal strength is based on the time it takes to form (rebound or breakout). The faster the signal forms, the stronger it is.
2. If two or more false signals appear near a level, all subsequent signals from that level should be ignored.
3. In flat markets, many false signals may form—or none at all. At the first signs of a flat, it's better to stop trading.
4. Trades should be opened between the start of the European session and the middle of the U.S. session. After that, all trades should be closed manually.
5. On the hourly timeframe, MACD signals should only be used if volatility is strong and the trend is confirmed by a trendline or channel.
6. If two levels are too close (within 5–20 pips), treat them as a support/resistance zone.
7. When a position moves 15–20 pips in the right direction, set the Stop Loss to breakeven.

What's on the Charts:

• Support and resistance price levels: Targets for opening buy or sell trades. Take Profit levels can be placed near them.
• Red lines: Trend channels or trendlines that show the current trend direction and preferred trade direction.
• MACD indicator (14,22,3): Histogram and signal line used as a supporting signal source.
• Key speeches and reports (always listed in the economic calendar) can significantly impact currency pair movements. It's advised to trade with extreme caution or exit the market during these events to avoid sharp reversals.

Note for beginner forex traders:Not every trade can be profitable. Developing a clear strategy and proper money management is the foundation of long-term success in forex trading.