Analysis of macro reports:

No important releases are scheduled for the first half of the day in the United States and the eurozone. The ECB will announce its interest rate decision and President Christine Lagarde will hold a press conference later today. The macroeconomic calendar contains three interesting reports in the United States, namely retail sales, industrial production, and initial jobless claims. Separately, they can hardly be called important but together they may affect trader sentiment if, of course, their results differ from forecasts. Otherwise, they will hardly provoke a reaction in the market.

It is also crucial to understand that the market is still digesting yesterday's outcome of the FOMC meeting. Today, it will also be processing the ECB's decision starting from the second half of the day. Therefore, all three US reports may be of no interest to the market.

Analysis of fundamental events:

In terms of fundamentals, the ECB will announce its interest rate decision and President Christine Lagarde will speak at a press conference today. There is a 99% probability of a rate hike by the European regulator. Likewise, yesterday's decision of the Federal Reserve was known for weeks. Anyway, the market expects a 0.25% rate increase and has long priced it in. We also anticipate one more hike after today's meeting with rates peaking at 4.25%. The euro is unlikely to be in an uptrend in the medium term. Rather it will go down due to being excessively overbought. Same is with the pound sterling. This currency is even more overbought than the euro. Moreover, no macro releases are scheduled for today in the United Kingdom. Next week, however, the Bank of England will hold a board meeting.

Final thoughts:

On Thursday, a row of macro data is set for release in the United States, but they will have no impact on the market. Traders will continue digesting the results of the FOMC meeting. The ECB will announce its rate decision today.

Basic principles of the trading system:

1) The strength of a signal depends on the time period during which the signal is formed (a rebound or a breakout). The shorter this period, the stronger the signal.

2) If two or more trades are opened at some level following false signals, i.e. those signals that do not lead the price to the Take Profit level or the nearest target level, any consequent signals near such a level should be ignored.

3) During a flat market, any currency pair may generate a lot of false signals or no signals at all. In any case, a flat market is not the best condition for trading.

4) Trades are opened in the time period between the beginning of the European session and the middle of the American session when all positions should be closed manually.

5) We pay attention to the MACD signals in the 30M time frame only if there is good volatility and a definite trend, confirmed by a trend line or a trend channel.

6) If two key levels are too close to each other (about 5-15 pips), they make a support or resistance area.

How to interpret charts:

Support and resistance can serve as targets when buying or selling. You can place a Take Profit near them.

Red lines are channels or trend lines that display the current trend and show which direction is better to trade.

MACD indicator (14,22,3) is a histogram and a signal line showing when it is better to enter the market.

Important speeches and reports in the economic calendar can greatly influence a currency pair. Therefore, during such events, it is recommended to trade as cautiously as possible or exit the market to avoid a sharp price reversal against the previous movement.

Beginner traders should remember that some trades can be unprofitable. Having a reliable trading strategy and a money management approach is the key to success in long-term trading.