No macroeconomic reports are scheduled for Wednesday, except for an insignificant indicator: US unemployment claims. Today is a shortened trading day in the currency market, as trading will close in the evening. Tomorrow is Christmas, and the market will be closed. The technical outlook for both currency pairs may remain bullish throughout the day, as the market is "thin" and most factors still point to a declining dollar.
Analysis of Fundamental Events:
No fundamental events are planned for Wednesday. In general, the market's questions currently revolve around the Federal Reserve. The last meeting took place recently, but afterwards, data on the labor market, unemployment, and inflation were published in the US, all of which have a significant impact on the Federal Reserve's monetary policy. Therefore, we do not know the updated perspective of Jerome Powell and other members of the FOMC. However, as mentioned, there are no scheduled remarks from Fed officials on Tuesday. With the holidays approaching, many politicians and officials are taking time off.
General Conclusions:
During the third trading day of the week, both currency pairs may continue their upward movements. Short-term trends for both currency pairs remain bullish, and the market demonstrates a willingness to continue trading and buying. The EUR/USD pair will trade from the 1.1808 level today, while the GBP/USD pair will trade from the 1.3529-1.3543 area.
Key Rules of the Trading System:
The strength of a signal is determined by the time it takes to form the signal (bounce or breakout). The less time it takes, the stronger the signal.
If two or more trades were opened near a certain level based on false signals, all subsequent signals from that level should be ignored.
In a flat, any pair can form a multitude of false signals or none at all. At the first signs of a flat, it is better to stop trading.
Trades are opened during the time between the start of the European session and mid-American session, after which all trades should be closed manually.
On the hourly timeframe, using signals from the MACD indicator, it is preferable to trade only when good volatility exists, and a trend is confirmed by a trend line or channel.
If two levels are too close to each other (5 to 20 pips), they should be viewed as an area of support or resistance.
After moving 15-20 pips in the right direction, a Stop Loss should be set to breakeven.
Chart Explanations:
Support and Resistance Levels: Levels that serve as targets for opening buys or sells. Take Profit levels can be placed near them.
Red Lines: Channels or trend lines that reflect the current trend and indicate the preferred direction to trade.
MACD Indicator (14, 22, 3): A histogram and signal line, a supplementary indicator that can also be used as a source of signals.
Important Note: Significant speeches and reports (always included in the news calendar) can greatly influence the movement of the currency pair. Therefore, during their release, it is advisable to trade cautiously or exit the market to avoid sharp reversals against the preceding movement.
Remember: For beginners trading in the Forex market, it is crucial to understand that not every trade can be profitable. Developing a clear strategy and implementing sound money management are keys to successful long-term trading.
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24.12.2025 08:26 AM
