Analysis of Macroeconomic Reports:

No significant macroeconomic reports are scheduled for Wednesday. The event calendars for the Eurozone, Germany, and the United Kingdom are empty, while in the United States, a report on new home sales will be released—but it is unlikely to generate significant market interest. As a result, the market could experience low-volatility range trading for most of the day. Once again, attention turns to the U.S. trading session, which typically shows more substantial movements than the European one. It's worth noting that the market still has plenty of reasons to sell the dollar. Therefore, even with an empty events calendar, the U.S. currency could continue to decline.

Analysis of Fundamental Events:

There are also no notable fundamental events on Wednesday. Yesterday, Federal Reserve Chair Jerome Powell delivered a speech, but it provided no meaningful information. Powell did not resign, has not responded to Donald Trump's provocations, and continues to maintain a firm stance on monetary policy.

The trade war remains the top concern for markets, with no signs of a resolution in sight. This issue is likely to remain a key factor influencing the dollar for some time to come. So don't be surprised that we repeat the same things daily—the situation remains complex. Trump has managed to conclude only three trade deals over more than four months of negotiations, one of which is highly questionable. Three deals out of a possible seventy-five. Over the past two weeks, the U.S. president has decided to increase tariffs on countries further unwilling to reach agreements with Washington, while also raising import duties on copper, pharmaceuticals, and semiconductors. These new tariffs have not yet been factored into the market's pricing, as it has been focused on technical corrections.

Conclusions:

On this third trading day of the week, both currency pairs may exhibit sluggish behavior due to the lack of important events. Technical corrections have been completed for both pairs, so we expect the upward movement to continue over the coming weeks and months. For the euro, the key area today is 1.1740–1.1745, and for the British pound, it is 1.3518–1.3532.

Key Rules for the Trading System:

1. Signal Strength: The shorter the time it takes for a signal to form (a rebound or breakout), the stronger the signal.
2. False Signals: If two or more trades near a level result in false signals, subsequent signals from that level should be ignored.
3. Flat Markets: In flat conditions, pairs may generate many false signals or none at all. It's better to stop trading at the first signs of a flat market.
4. Trading Hours: Open trades between the start of the European session and the middle of the US session, then manually close all trades.
5. MACD Signals: On the hourly timeframe, trade MACD signals only during periods of good volatility and a clear trend confirmed by trendlines or trend channels.
6. Close Levels: If two levels are too close (5–20 pips apart), treat them as a support or resistance zone.
7. Stop Loss: Set a Stop Loss to breakeven after the price moves 15–20 pips in the desired direction.

Key Chart Elements:

Support and Resistance Levels: These are target levels for opening or closing positions and can also serve as points for placing Take Profit orders.

Red Lines: Channels or trendlines indicating the current trend and the preferred direction for trading.

MACD Indicator (14,22,3): A histogram and signal line used as a supplementary source of trading signals.

Important speeches and reports, which are consistently featured in the news calendar, can significantly influence the movement of a currency pair. Therefore, during their release, it is advisable to trade with caution or consider exiting the market to avoid potential sharp price reversals against the prior trend.

Beginners in the Forex market should understand that not every transaction will be profitable. Developing a clear trading strategy and practicing effective money management are crucial for achieving long-term success in trading.