Macroeconomic Report Overview:

No macroeconomic reports are scheduled for Monday. Therefore, today, traders may only monitor speeches by Donald Trump and little else. Even speeches by central bank representatives currently carry minimal significance, as markets have a clear understanding of what to expect in the near future. The only remaining uncertainty relates to the Federal Reserve's monetary policy, though even that is relatively minor.

Fundamental Event Overview:

Few fundamental events are scheduled for Monday, and almost none of them are generating any interest. Over the past several weeks, we have witnessed numerous speeches from representatives of the European Central Bank, Bank of England, and Federal Reserve. As such, the market is fully aware of the positions of all three central banks. A scheduled speech by Isabel Schnabel from the ECB on Monday is unlikely to change anything.

It's worth recalling that Eurozone inflation increased more than expected in September, which does not support further monetary easing. However, even before the new inflation report, the ECB was not inclined to lower the key interest rate further. Thus, the release of the new inflation figures has changed nothing.

General Conclusions:

On the first trading day of the week, both currency pairs may continue their upward movement after breaking through trendlines. For the euro, there is a strong trading area at 1.1655–1.1666, from which both long and short positions can be considered depending on upcoming signals. For the British pound, the 1.3413–1.3421 area has already been broken through, which means further growth toward the 1.3466–1.3475 zone can be expected.

Main Rules of the Trading System:

1. Signal strength is determined by how quickly the signal is formed (rebound or breakout of a level). The less time it took, the stronger the signal.
2. If two or more false signal trades were opened near a certain level, all subsequent signals from that level should be ignored.
3. During flat market conditions, any pair may generate many false signals or none at all. In any case, trading is best avoided at the first signs of a flat market.
4. Trades should be opened between the start of the European session and the middle of the U.S. session; all trades should be closed manually afterward.
5. On the hourly timeframe, signals from the MACD indicator should only be traded when there is sufficient volatility and an established trend confirmed by a trendline or trend channel.
6. If two levels are located too close (5 to 20 pips apart), treat them as a single support or resistance zone.
7. After a trade has moved 15-20 pips in the correct direction, set the Stop Loss to breakeven.

What's on the Charts:

• Support and Resistance Price Levels – levels that serve as targets for opening buy and sell trades. Take Profit levels can be placed near them.
• Red Lines – trendlines or trend channels that display the current trend direction and indicate the preferred trading direction.
• MACD Indicator (14,22,3) – histogram and signal line – an auxiliary indicator that can also be used as a source of signals.

Important speeches and reports (always shown in the news calendar) can significantly impact currency pair movements. Therefore, during their release, it's best to trade with extreme caution or exit the market entirely to avoid sharp reversals against the preceding trend.

Beginner forex traders should remember that not every trade can be profitable. Developing a clear strategy and using proper money management are key to long-term trading success.