See also
Numerous macroeconomic events are scheduled for Friday, but none are particularly significant. Currently, both currency pairs are experiencing relatively high volatility, indicating that the macroeconomic backdrop is not the main driver of market movements. For instance, several reports were released yesterday, but they had no substantial impact on the markets. Today, the UK will release its retail sales report, the EU will release the second estimate of inflation for December, and the US will provide data on industrial production, building permits, and new home sales. If any of these reports show figures that deviate significantly from forecasts, we could see a relatively strong market reaction. However, it's unlikely that today's data will shift market sentiment in a major way.
Among Friday's fundamental events, Joachim Nagel's speech (the President of the Bundesbank) stands out. However, the Eurozone has recently been lacking significant events or reports, and the European Central Bank's position, which is more critical, is already well understood: they will continue with monetary policy easing without pauses or interruptions. Therefore, we do not expect Nagel to provide any information that could move the markets today.
On the final trading day of the week, we can expect moderate market movements, as there are no significant events on the agenda. The most notable reports to watch will be the US industrial production data and the UK retail sales report. Given this week's inflation data, it is likely that both currency pairs will continue to decline. However, today's trading decisions will primarily rely on technical analysis.
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 Events and Reports: Found in the economic calendar, these can heavily influence price movements. Exercise caution or exit the market during their release to avoid sharp reversals.
Forex trading beginners should remember that not every trade will be profitable. Developing a clear strategy and practicing proper money management are essential for long-term trading success.
You have already liked this post today
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
InstaTrade
PAMM accounts
Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.
If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.
Why does your IP address show your location as the USA?
Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaTrade anyway.
We are sorry for any inconvenience caused by this message.