Analysis of Macroeconomic Reports:

Several macroeconomic reports are scheduled for Wednesday, including important reports. Unfortunately, many significant reports and events have been ignored by the market over the past month. A prime example is the important ISM manufacturing index published in the U.S. on Monday, which showed a resonant but weak value, yet we did not see any decline in the dollar. A similar fate might befall today's ADP and ISM reports for the services sector, which are the most important for Wednesday. In the Eurozone, Germany, and the UK, service sector activity indices will be published in their second assessments for October, but these are absolutely secondary data.

Analysis of Fundamental Events:

Overall Conclusions:

During the third trading day of the week, the macroeconomic background may influence the movement of both currency pairs in the second half of the day. The European currency formed a buy signal around 1.1474 yesterday, so today it is expected to rise toward a target of 1.1527. As for the British pound, new trading signals may emerge in the 1.2980-1.2993 area or around 1.3043.

Main Rules of the Trading System:

1. The strength of the signal is assessed based on the time it took to form the signal (bounce or breach of a level). The shorter the time, the stronger the signal.
2. If two or more trades have been opened around a certain level on false signals, all subsequent signals from that level should be ignored.
3. In a flat market, any pair can generate a multitude of false signals or may not form any at all. In any case, at the first signs of a flat, it's better to stop trading.
4. Trading deals are opened during the time period between the beginning of the European session and the middle of the American session, after which all deals should be closed manually.
5. On the hourly timeframe, it is advisable to trade on signals from the MACD indicator only when there is good volatility and a trend that is confirmed by a trend line or trend channel.
6. If two levels are too close to each other (between 5 and 20 pips), they should be treated as a support or resistance area.
7. After moving 15-20 pips in the right direction, a Stop Loss should be set to breakeven.

What is on the Charts:

• Support and resistance price levels are targets for opening buy or sell positions. Take Profit levels can be placed around them.
• Red lines indicate channels or trend lines that reflect the current trend and indicate the preferred direction for trading.
• The MACD indicator (14,22,3) — histogram and signal line — is an auxiliary indicator that can also be used as a source of signals.

Important speeches and reports (always available in the news calendar) can significantly impact the movement of the currency pair. Therefore, during their release, trading should be done with maximum caution, or traders should exit the market to avoid a sharp reversal in price against the preceding movement.

Beginners trading in the Forex market should remember that not every trade can be profitable. Developing a clear strategy and money management are keys to success in trading over the long term.