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Trading Signals for GOLD (XAU/USD) for January 24-27, 2025: sell below $2,783 (21 SMA - 7/8 Murray)

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Early in the American session, gold is trading around 2,778 reaching a high at 2,781 for now. Gold is showing bullish momentum, but technically, exhaustion and overbought levels are observed.

If gold falls below 7/8 Murray at 2,773 in the next few hours, we could expect a technical correction to occur and the price could reach the 21 SMA located at 2,754. Finally, gold is expected to reach the support of 6/8 Murray at 2,734.

7/8 Murray is not a strong resistance for gold. So, we believe that gold could reach 8/8 Murray located at 2,812 in the next few days.

Meanwhile, a technical correction could be expected around 2,750. From this point, a technical rebound could benefit gold bulls. Thus, the instrument could continue its rise until reaching the target of $2,800.

Our trading plan for the next few hours is to sell gold below the top of the uptrend channel around 2,780, with a target at 2,754. The Eagle indicator is overbought which could lead to a drop in gold in the next few hours.

The material has been provided by InstaForex Company - www.instaforex.com.

USD/JPY: Simple Trading Tips for Beginner Traders on January 24th (U.S. Session)

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Analysis of Trades and Trading Tips for the Japanese Yen

The test of the 155.07 price level occurred when the MACD indicator had just started moving downward from the zero line, confirming a correct entry point for selling the dollar in continuation of the morning trend. Unfortunately, the trade resulted in a loss, as the pair did not experience a new wave of decline.

The fact that the Bank of Japan raised interest rates and then took a wait-and-see approach led traders to start buying the dollar and selling the yen again, even as many risky assets on the forex market continued to rise. It appears that the yen is under special attention from traders and seems to be acting independently of other currencies. Upcoming U.S. macroeconomic indicators may further boost USD/JPY if the data supports the dollar. These include PMI business activity indices, consumer sentiment indices from the University of Michigan, inflation expectations, and existing home sales data. The latter will be closely watched as it provides insights into the health of the housing market. Only very weak U.S. data could put pressure back on the dollar and remind traders that the Bank of Japan is focusing on tightening its policy, unlike the Federal Reserve's current easing stance.

For the intraday strategy, I will rely more on Scenario #1 and Scenario #2 to continue the downward trend.

Buy Signal

Scenario #1: Today, I plan to buy USD/JPY at an entry point near 156.27 (green line on the chart), aiming for a rise to the level of 157.05 (thicker green line on the chart). At 157.05, I will exit purchases and open sell positions in the opposite direction (targeting a 30–35-point movement downward). Expect the pair's growth only if strong U.S. statistics are released.Important! Before buying, ensure the MACD indicator is above the zero line and just beginning its upward movement.

Scenario #2: I also plan to buy USD/JPY if the price tests 155.69 twice, and the MACD indicator is in the oversold zone. This will limit the pair's downward potential and lead to a market reversal upward. Growth toward 156.27 and 157.05 can be expected.

Sell Signal

Scenario #1: I plan to sell USD/JPY after the price updates 155.69 (red line on the chart), which should lead to a rapid decline. The key target for sellers will be 155.05, where I will exit sell positions and open buy positions in the opposite direction (targeting a 20–25-point upward movement). Pressure on the pair today is possible, but it will require a specific informational trigger.Important! Before selling, ensure the MACD indicator is below the zero line and just beginning its downward movement.

Scenario #2: I also plan to sell USD/JPY if the price tests 156.27 twice, and the MACD indicator is in the overbought zone. This will limit the pair's upward potential and lead to a market reversal downward. Declines toward 155.69 and 155.00 can be expected.

Chart Details:

• Thin Green Line: Entry price for buying the trading instrument.
• Thick Green Line: Target price for setting Take Profit or manually securing profits, as further growth above this level is unlikely.
• Thin Red Line: Entry price for selling the trading instrument.
• Thick Red Line: Target price for setting Take Profit or manually securing profits, as further declines below this level are unlikely.
• MACD Indicator: Key for market entry, focusing on overbought and oversold zones.

Important Note for Beginner Forex Traders

Beginner traders should be very cautious when deciding to enter the market. Before important fundamental reports are released, it is often best to stay out of the market to avoid sharp price swings. If you decide to trade during news releases, always use stop-loss orders to minimize losses. Without stop-loss orders, you risk quickly losing your entire deposit, especially if trading large volumes without proper money management.

Remember, successful trading requires a clear trading plan, such as the one provided above. Spontaneous trading decisions based on the current market situation are inherently a losing strategy for an intraday trader.

The material has been provided by InstaForex Company - www.instaforex.com.

GBP/USD: Simple Trading Tips for Beginner Traders on January 24th (U.S. Session)

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Analysis of Trades and Trading Tips for the British Pound

The test of the 1.2417 price level occurred when the MACD indicator had moved significantly above the zero mark, clearly limiting the pair's upward potential. For this reason, I did not buy the pound. Similarly, the test of the 1.2383 price level did not allow me to enter the market for selling the pound, as the MACD indicator was far from the zero mark at the time of the level's update.

Improved PMI data from the UK has been a significant factor contributing to positive market changes. Traders, taking into account new economic indicators, began to revise their investment strategies, which led to increased demand for the British pound. Survey results in the services and manufacturing sectors showed higher activity levels than expected, fueling investor optimism. This positive trend creates favorable conditions for further pound growth, opening up new opportunities for speculators and long-term investors. The recovery of the UK economy and the improvement of key indicators provide a basis for expecting currency support in the near term. However, potential risks should not be ignored, including external factors such as changes in the global economy or U.S. policy.

In the second half of the day, a significant amount of statistics is expected. It begins with PMI indices from the U.S. and concludes with data on consumer sentiment from the University of Michigan, inflation expectations from the University of Michigan, and existing home sales. PMI indices, particularly those for manufacturing and non-manufacturing sectors, provide insights into current business trends. Readings above 50 generally signal growth, potentially encouraging investors to act in favor of buying the U.S. dollar.

The consumer sentiment index and inflation expectations are also key in determining consumer spending trends. Higher inflation expectations may push consumers to increase spending now to avoid higher prices in the future, which, in turn, could boost economic activity. Additionally, data on existing home sales will be critical, as it reflects the health of the real estate market. An increase in sales could indicate economic recovery, while a decline might point to potential issues in consumer confidence and financial stability.

For intraday strategy, I will focus primarily on implementing Scenarios #1 and #2.

Buy Signal

Scenario #1: Today, I plan to buy the pound at the entry point near 1.2439 (green line on the chart) with a target of reaching the 1.2484 level (thicker green line on the chart). At 1.2484, I will exit purchases and open sell positions, aiming for a 30–35-point movement in the opposite direction from the entry point. The pound's growth today is expected to continue its upward trend.Important! Before buying, ensure that the MACD indicator is above the zero mark and just beginning its upward movement.

Scenario #2: I also plan to buy the pound today in the event of two consecutive tests of the 1.2409 level when the MACD indicator is in the oversold zone. This will limit the pair's downward potential and lead to a market reversal upwards. Growth toward the opposite levels of 1.2439 and 1.2484 can be expected.

Sell Signal

Scenario #1: I plan to sell the pound today after the level of 1.2409 (red line on the chart) is updated, leading to a quick decline in the pair. The key target for sellers will be the 1.2369 level, where I will exit sell positions and open buy positions immediately, aiming for a 20–25-point move in the opposite direction. Sellers will likely show activity if U.S. statistics are strong.Important! Before selling, ensure that the MACD indicator is below the zero mark and just beginning its downward movement.

Scenario #2: I also plan to sell the pound today in the event of two consecutive tests of the 1.2439 level when the MACD indicator is in the overbought zone. This will limit the pair's upward potential and lead to a market reversal downward. A decline toward the opposite levels of 1.2409 and 1.2369 can be expected.

Chart Details:

• Thin Green Line: Entry price for buying the trading instrument.
• Thick Green Line: Target price for setting Take Profit or manually securing profits, as further growth above this level is unlikely.
• Thin Red Line: Entry price for selling the trading instrument.
• Thick Red Line: Target price for setting Take Profit or manually securing profits, as further declines below this level are unlikely.
• MACD Indicator: Key for market entry, focusing on overbought and oversold zones.

Important Note for Beginner Forex Traders

Be extremely cautious when deciding to enter the market. Before key fundamental reports are released, it is often best to stay out of the market to avoid sharp price swings. If you choose to trade during news releases, always use stop-loss orders to minimize losses. Without stop-loss orders, you risk quickly losing your entire deposit, especially if you trade large volumes without proper money management.

And remember, successful trading requires a clear trading plan, such as the example provided above. Making spontaneous trading decisions based on the current market situation is inherently a losing strategy for an intraday trader.

The material has been provided by InstaForex Company - www.instaforex.com.

EUR/USD: Simple Trading Tips for Beginner Traders on January 24th (U.S. Session)

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Analysis of Trades and Trading Tips for the Euro

The test of the 1.0470 price level occurred when the MACD indicator had just started moving upward from the zero mark, combined with strong data from the Eurozone. This helped confirm the decision to buy the euro in continuation of the upward trend. As a result, the euro gained another 40 points, falling just short of the target level at 1.0523.

Considering the latest PMI data from the Eurozone, the euro is clearly benefiting from the current environment. While European countries continue to face economic challenges, including weak manufacturing activity, PMI data managed to support the euro, albeit temporarily. However, uncertainty about possible new tariffs from the Trump administration is adding nervousness to the markets. Investors are cautiously observing developments, fearing surprises that could destabilize the markets. This, in turn, affects trader activity, prompting the use of lighter trading strategies.

In the coming hours, attention will be focused on U.S. PMI data for the manufacturing and services sectors. These indicators are key barometers of economic health, reflecting business confidence and consumer demand trends. If the figures exceed expectations, they may signal a recovery in activity, positively impacting the dollar. While the current situation in the manufacturing sector remains unstable, if the new data confirms strengthening business confidence, it could lead to increased investment and job growth. Such developments could further strengthen the dollar and weaken the euro.

Buy Signal

Scenario #1: Today, buying the euro is possible at the price level of 1.0518 (green line on the chart), targeting growth to 1.0569. At 1.0569, I plan to exit the market and sell the euro on a reversal, aiming for a 30–35-point move in the opposite direction from the entry point. Counting on euro growth today is only realistic if U.S. data comes in weak.Important! Before buying, ensure that the MACD indicator is above the zero mark and just start its upward movement from it.

Scenario #2: I also plan to buy the euro today if there are two consecutive tests of the 1.0481 level when the MACD indicator is in the oversold zone. This will limit the pair's downward potential and lead to a market reversal upwards. Growth toward the opposite levels of 1.0518 and 1.0569 can be expected.

Sell Signal

Scenario #1: I plan to sell the euro after reaching the 1.0481 level (red line on the chart). The target will be 1.0433, where I will exit the market and immediately buy in the opposite direction, aiming for a 20–25-point move in the opposite direction from the level. Selling pressure may return to the pair at any time.Important! Before selling, ensure that the MACD indicator is below the zero mark and just start its downward movement from it.

Scenario #2: I also plan to sell the euro today in the event of two consecutive tests of the 1.0518 level when the MACD indicator is in the overbought zone. This will limit the pair's upward potential and lead to a market reversal downwards. A decline toward the opposite levels of 1.0481 and 1.0433 can be expected.

Chart Details:

• Thin Green Line: Entry price for buying the trading instrument.
• Thick Green Line: Suggested price to place Take Profit or manually secure profits, as further growth above this level is unlikely.
• Thin Red Line: Entry price for selling the trading instrument.
• Thick Red Line: Suggested price to place Take Profit or manually secure profits, as further declines below this level are unlikely.
• MACD Indicator: Key for market entry, focusing on overbought and oversold zones.

Important Note for Beginner Forex Traders: Exercise extreme caution when deciding on market entries. Ahead of key fundamental reports, it's often better to stay out of the market to avoid sudden price swings. If you decide to trade during news releases, always use stop-loss orders to minimize losses. Without stop-loss orders, you risk quickly losing your entire deposit, especially if you trade in large volumes without proper money management.

And remember, successful trading requires a clear trading plan, such as the example provided above. Spontaneous trading decisions based on the current market situation are an inherently losing strategy for an intraday trader.

The material has been provided by InstaForex Company - www.instaforex.com.

GBP/USD: Trading Plan for the U.S. Session on January 24th (Analysis of Morning Trades)

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In my morning forecast, I focused on the 1.2412 level and planned to make trading decisions based on it. Let's look at the 5-minute chart and analyze what happened. A rise and subsequent false breakout near 1.2325 provided a good entry point for selling the pound, resulting in a decline of more than 40 points. The technical outlook was revised for the second half of the day.

For Opening Long Positions on GBP/USD:

Strong PMI data from the UK led traders to reassess their positions, pushing the pound to a new weekly high and continuing its growth within a new bullish market. The second half of the day includes numerous statistics, starting with PMI indices from the U.S. and ending with consumer sentiment and inflation expectations from the University of Michigan, along with U.S. existing home sales data.

In case of a bearish reaction to this data, I plan to buy only after a false breakout near the nearest support at 1.2412, which is intermediate in nature. The target will be a recovery of GBP/USD to the resistance at 1.2476, where I expect sellers to make their first significant move. A breakout and retest of this range from above to below will provide a new entry point for long positions, aiming to update 1.2510, further strengthening the bullish trend. The ultimate target will be the level around 1.2543, where I will fix profits.

If GBP/USD declines and bulls show no activity at 1.2412, the pound could reverse all its morning gains. In this case, only a false breakout near the 1.2375 low will provide suitable conditions for opening long positions. I plan to buy GBP/USD immediately on a rebound from 1.2336, targeting an intraday correction of 30-35 points.

For Opening Short Positions on GBP/USD:

Sellers made themselves known in the first half of the day, but strong data wiped out all attempts to reverse the market. In the event of further GBP/USD growth, it is important not to miss the nearest resistance at 1.2476, which may be tested soon. A false breakout there, following U.S. data, will provide an entry point for short positions targeting the 1.2412 level. A breakout and retest of this range from below to above will trigger stop orders, paving the way toward 1.2375. The ultimate target will be the level around 1.2336, where I will fix profits.

If demand for the pound persists in the second half of the day and bears fail to act around 1.2476, it would be better to postpone short positions until testing the resistance at 1.2510. I will sell there only after a failed consolidation. If no downward movement occurs even there, I will look for short positions on a rebound from 1.2543, but only for a correction of 30-35 points within the day.

Commitment of Traders (COT) Report:

The COT report for January 14 showed a sharp increase in short positions and a reduction in long ones. The balance of power has shifted significantly. It is clear that the market is now at a turning point, with an almost equal number of buyers and sellers, which does not favor the former. In the near term, labor market data will be released, and following weak UK GDP growth and high inflation figures, the Bank of England's future decisions seem less certain. Whether the regulator will cut interest rates given the current challenges remains an open question.

The latest COT report indicated that long non-commercial positions decreased by 786, to a level of 80,557, while short non-commercial positions increased by 13,282, to a level of 80,119. As a result, the gap between long and short positions widened by 413.

Indicator Signals

Moving Averages

The pair is trading above the 30- and 50-day moving averages, indicating a continued rise in the pound.

Note: The author considers moving averages on the hourly H1 chart, which differ from the classic daily moving averages on the D1 chart.

Bollinger Bands

If the pair declines, the lower boundary of the indicator near 1.2330 will act as support.

Indicator Descriptions:

• Moving Average (MA): Identifies the current trend by smoothing volatility and noise. Period: 50 (yellow on the chart); Period: 30 (green on the chart).
• MACD Indicator (Moving Average Convergence/Divergence): Fast EMA – period 12; Slow EMA – period 26; SMA – period 9.
• Bollinger Bands: Period: 20.
• Non-commercial traders: Speculators like individual traders, hedge funds, and large institutions using the futures market for speculative purposes.
• Long Non-commercial Positions: Total long open positions of non-commercial traders.
• Short Non-commercial Positions: Total short open positions of non-commercial traders.
• Total Non-commercial Net Position: The difference between short and long positions of non-commercial traders.

The material has been provided by InstaForex Company - www.instaforex.com.

EUR/USD: Trading Plan for the U.S. Session on January 24th (Analysis of Morning Trades)

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In my morning forecast, I focused on the 1.0454 level and planned to make trading decisions based on it. Let's take a look at the 5-minute chart and see what happened. A breakout and retest of 1.0454 provided a good entry point for long positions, continuing the euro's rise, resulting in an upward movement of more than 50 points. The technical picture was revised for the second half of the day.

For Opening Long Positions on EUR/USD:

Strong PMI activity data, especially from Germany, strengthened the euro within the bullish market observed throughout the week. It remains to be seen whether similar U.S. data can support the dollar, which is quickly losing ground under Trump's lenient policies. Key reports today include the U.S. Manufacturing PMI, Services PMI, and Composite PMI. If U.S. data remains strong, the dollar could stage a significant recovery.

In the event of a decline, I plan to act near the nearest support at 1.0466, formed during the first half of the day. A false breakout at this level will provide a good entry point, aiming for a rise toward the resistance at 1.0511, formed during European trading. A breakout and retest of this range, coupled with weak U.S. data, will confirm the right entry point for buying, with the target of reaching 1.0539. The ultimate target will be the 1.0567 level, where I will fix profits.

If EUR/USD declines and there is no activity near 1.0466 in the second half of the day, selling pressure will return, allowing sellers to push toward 1.0414. I will consider buying the euro only after a false breakout at this level. Long positions will be opened immediately on a rebound from 1.0375, targeting an intraday correction of 30-35 points.

For Opening Short Positions on EUR/USD:

Sellers have shown relatively low activity, which is understandable as there are currently no strong reasons to sell the euro. However, everything could change quickly, especially if Trump takes a more serious stance on tariffs against the EU.

The primary task for bears in the second half of the day will be to protect the resistance at 1.0511. A false breakout there will confirm the presence of large sellers, offering an entry point for short positions targeting support at 1.0466. A breakout and consolidation below this range, followed by a retest from the bottom up, will offer another suitable selling opportunity, aiming for the 1.0414 low, where moving averages, supporting buyers, are located. The ultimate target will be 1.0375, where I will fix profits.

If EUR/USD moves higher in the second half of the day and sellers fail to act at 1.0511, I will postpone short positions until the next resistance at 1.0539. I will sell from there only after an unsuccessful consolidation. Immediate short positions on a rebound will be opened from 1.0567, targeting a downward correction of 30-35 points.

In the Commitment of Traders (COT) report for January 14, both long and short positions decreased. Amid growing uncertainty over the Federal Reserve's future policy, traders have reduced some positions. The inauguration of Donald Trump added pessimism, though the balance of power has not significantly changed. The report indicated that long non-commercial positions fell by 3,743 to 162,760, while short non-commercial positions dropped by 7,470 to 223,157. As a result, the gap between long and short positions widened by 3,096.

Indicator Signals

Moving Averages

The pair is trading above the 30- and 50-day moving averages, indicating a continuation of the euro's upward trend.

Note: The author considers moving averages on the hourly H1 chart, differing from the classic daily averages on the D1 chart.

Bollinger Bands

If the pair declines, the lower boundary of the indicator near 1.0395 will act as support.

Indicator Descriptions:

• Moving Average (MA): Identifies the current trend by smoothing volatility and noise. Period: 50 (yellow on the chart); Period: 30 (green on the chart).
• MACD Indicator (Moving Average Convergence/Divergence): Fast EMA – period 12; Slow EMA – period 26; SMA – period 9.
• Bollinger Bands: Period: 20.
• Non-commercial traders: Speculators like individual traders, hedge funds, and large institutions using the futures market for speculative purposes.
• Long Non-commercial Positions: Total long open positions of non-commercial traders.
• Short Non-commercial Positions: Total short open positions of non-commercial traders.
• Total Non-commercial Net Position: The difference between short and long positions of non-commercial traders.

The material has been provided by InstaForex Company - www.instaforex.com.

Trading Signals for EUR/USD for January 24-27, 2025: sell below 1.0500 (21 SMA - 6/8 Murray)

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Early during the American session, the euro is trading around 1.0498, below 6/8 Murray, and above the 21 SMA and 200 EMA with a bullish bias. EUR/USD is approaching overbought and resistance levels.

During the European session, the euro reached a high of 1.0517. Since then, we have been observing a technical correction. EUR/USD is likely to continue falling in the next few hours and could reach the bottom of the uptrend channel around 1.0390 and Murray 5/8 at 1.0378.

Technically, the euro is overbought. Therefore, if the price consolidates below the psychological level of 1.05, there is a possibility of a technical correction in the next few days.

If EUR/USD consolidates above 6/8 Murray in the next few days, it is likely to continue rising and could reach 7/8 Murray at 1.0620 and even 8/8 Murray around 1.0725.

Our trading plan for the next few hours is to sell the euro below 1.0500 with targets at 1.0417 and 1.0380. The eagle indicator is giving a negative signal, supporting our bearish strategy.

The material has been provided by InstaForex Company - www.instaforex.com.

Video analysis for January 24, 2025

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Potential for the further upside on US100

The material has been provided by InstaForex Company - www.instaforex.com.

EUR/JPY: ECB's Decision to Cut Rates Could Weigh on the Pair

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The ongoing recession in Europe, compounded by the Western conflict with Russia on Ukrainian territory, is likely to force the European Central Bank (ECB) to lower interest rates to mitigate the region's economic damage.

In such a scenario, rate cuts by the ECB, in contrast to potential rate hikes by the Bank of Japan, could lead to a significant decline in the EUR/JPY pair's rate.

The pair may face selling pressure as the euro weakens against the yen, potentially driving the pair lower today, with further downside expected next week following the ECB's decision to cut rates.

Technical picture and trading idea:

The price is currently at the midline of the Bollinger Bands, below both the 5-period and 14-period SMAs, which are crossing to signal a sell. The RSI remains above the 50% level but is approaching it, with a break below serving as an additional sell signal. Meanwhile, the Stochastic indicator is below 50%, though currently offering limited insight.

A drop below the 162.25 level could lead to a notable decline toward the 159.65 level.

The material has been provided by InstaForex Company - www.instaforex.com.

AUD/USD: After Trump's Statement on a Possible Trade Deal with China, the Australian Dollar Gains Momentum

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The AUD/USD pair has broken out of its two-day trading range, reaching a new monthly high. Spot prices are displaying positive momentum, pushing beyond the 50-day Simple Moving Average (SMA) and positioning for further gains amid U.S. dollar weakness.

The U.S. Dollar Index, which tracks the greenback against a basket of currencies, is falling to a new monthly low on expectations that the Federal Reserve will cut interest rates by the end of the year.

These expectations have been bolstered by comments from U.S. President Donald Trump, who called for immediate rate cuts. Combined with overall market optimism, this has weakened the dollar's safe-haven status and supported the rally in AUD/USD.

Global risk sentiment received an additional boost after Trump stated his preference for avoiding tariffs on China and highlighted the possibility of reaching a trade agreement. These remarks have eased inflationary concerns and contributed to a decline in U.S. Treasury yields, further pressuring the dollar. Additionally, technical buying above the 0.6300 level has driven the intraday rise in AUD/USD. The Relative Strength Index (RSI) has confidently crossed the 50-level on the daily chart in a positive direction, while the 9-day Exponential Moving Average (EMA) has moved above the 14-day EMA, further signaling potential for continued growth.

With the recent gains, spot prices have risen by approximately 200 points from the lowest levels reached earlier this month and are on track to break a three-week losing streak.

For better trading opportunities today, attention should focus on the release of preliminary U.S. PMI data, which could provide additional momentum during the early North American session. Moving into next week, Monday's official Chinese PMI figures will be key to influencing sentiment regarding the Australian dollar, a currency closely tied to China's economic performance.

The material has been provided by InstaForex Company - www.instaforex.com.

DXY: U.S. Dollar Index. Trump's Statements Weaken the Dollar

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For the second consecutive day, the U.S. Dollar Index (DXY) is declining, hitting a new monthly low, dropping nearly 0.40% intraday, and remaining on track to register losses for the second week in a row.

Markets are pricing in the likelihood of the Federal Reserve cutting interest rates twice this year amid signs of inflationary pressures in the U.S. Adding to this, U.S. President Donald Trump, speaking remotely at the World Economic Forum in Davos, stated that he will push for lower interest rates, which is seen as a key factor undermining the dollar.

Trump also mentioned that his conversation with Chinese President Xi Jinping was friendly, and he would prefer to reach a trade agreement with China without resorting to tariffs. This reduces concerns about Trump's protectionist policies, which could drive inflation, and supports expectations of further easing by the Federal Reserve. These factors contributed to a modest decline in U.S. Treasury yields, thereby exerting additional pressure on the dollar.

Moreover, the Bank of Japan's hawkish rate hikes are supporting the Japanese yen, creating downward pressure on the dollar, as the yen is also considered a safe-haven asset.

In general, the positive sentiment in equity markets further undermines the dollar's status as a safe-haven asset, leading to an intraday decline in the index.

Today, for new trading opportunities, attention should be paid to the release of U.S. business activity indices, which could provide new momentum during the U.S. session.

From a technical perspective, the RSI (Relative Strength Index) crossed below the 50-level on the daily chart, indicating that bears are gaining control.

The table below shows the percentage change in the U.S. dollar relative to major traded currencies today.

The U.S. dollar performed strongest against the Swiss franc.

The material has been provided by InstaForex Company - www.instaforex.com.

Forecast for EUR/USD on January 24, 2025

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On Thursday, the EUR/USD pair rebounded from the 76.4% Fibonacci corrective level at 1.0376, reversed in favor of the euro, and secured above the 100.0% Fibonacci level at 1.0437. This indicates that the upward movement may continue toward the next corrective level of 127.2% at 1.0507. The upward trend channel continues to signal a bullish market sentiment. A decline in the euro seems unlikely in the near term.

The wave structure remains clear. The last completed downward wave broke the low of the previous wave, while the current upward wave has yet to surpass its previous peak. This indicates that the bearish trend is still ongoing, with no signs of a reversal. For a trend reversal to occur, the euro must rise confidently above the 1.0460 level and close above it within the current wave. This could happen as soon as today.

The economic calendar on Thursday was relatively quiet. However, Donald Trump made headlines once again with his speech at the Davos International Forum, where he delivered several bold statements. While not all of his claims are likely to materialize, his remarks often influence the market. The U.S. president stated that he will demand monetary policy easing from the Federal Reserve.

It's worth noting that Trump previously pressured the Fed during his first term, arguing that high interest rates make the dollar "too strong," which hinders U.S. exports. At the time, Fed Chair Jerome Powell resisted Trump's demands. Today, Powell remains at the helm, and it is unlikely that Trump will succeed in influencing him. Therefore, I do not expect the FOMC to cut rates in 2025 beyond what it has already planned, or beyond what inflation allows. Nonetheless, Trump's remarks prompted selling pressure on the dollar.

On the 4-hour chart, the pair has risen to the 127.2% Fibonacci corrective level at 1.0436 and secured above it. This suggests that the upward movement may continue toward the next Fibonacci level of 100.0% at 1.0603. Furthermore, the euro has broken above the downward trend channel, signaling a gradual shift to a bullish trend. However, the duration of this bullish trend remains uncertain.

Commitments of Traders (COT) Report

During the last reporting week, speculators closed 3,743 long positions and 7,470 short positions. The sentiment among the "Non-commercial" group remains bearish, indicating a potential further decline for the pair. The total number of long positions held by speculators now stands at 162,000, while short positions total 223,000.

For 18 consecutive weeks, major players have been offloading the euro. This confirms a bearish trend without any exceptions. Occasionally, bulls dominate within certain weeks, but these instances are exceptions rather than the rule. The main driver for the dollar's decline—expectations of FOMC monetary policy easing—has already been priced in, leaving the market with little reason to sell the dollar further. However, new reasons may emerge soon, potentially even this week. For now, the rise of the U.S. dollar appears more probable. Graphical analysis also supports the continuation of the long-term bearish trend, suggesting further declines in the EUR/USD pair.

Economic Calendar for the EU and the US:

• EU: German Services PMI (08:30 UTC)
• EU: German Manufacturing PMI (08:30 UTC)
• EU: Eurozone Services PMI (09:00 UTC)
• EU: Eurozone Manufacturing PMI (09:00 UTC)
• US: Services PMI (14:45 UTC)
• US: Manufacturing PMI (14:45 UTC)
• US: New Home Sales (15:00 UTC)
• US: Consumer Sentiment Index (15:00 UTC)

The economic calendar for January 24 is packed with entries, mostly focused on business activity data. The impact of the news background on market sentiment may be moderate and could manifest at various times throughout the day.

Forecast for EUR/USD and Trading Recommendations

Selling opportunities may arise if the pair consolidates below the upward trend channel on the hourly chart. Currently, there is a high probability of a bullish trend reversal. Buying opportunities were present after a rebound from the 1.0336–1.0346 zone with targets at 1.0435–1.0448, which have already been achieved. New buying opportunities may arise after further rebounds or consolidations on the hourly chart.

Fibonacci levels are plotted at 1.0437–1.0179 on the hourly chart and 1.0603–1.1214 on the 4-hour chart.

The material has been provided by InstaForex Company - www.instaforex.com.

GBP/USD. January 24th. The US Dollar Awaits the FOMC Meeting

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On the hourly chart, the GBP/USD pair rebounded from the 261.8% Fibonacci level at 1.2303 on Thursday, reversed in favor of the British pound, and secured itself above the 1.2363–1.2370 resistance zone. This suggests the potential for continued growth toward the next resistance zone at 1.2488–1.2508. However, the pound's growth is currently limited by the upward trend channel that supports its continuation. The pair is now near the upper boundary of this channel, making further short-term growth uncertain.

The wave structure remains clear. The last completed downward wave broke the low of the previous wave, while the last upward wave has yet to approach its previous peak. This indicates the continuation of a bearish trend, with no signs of reversal at this point. To terminate this trend, the pound must rise to at least 1.2569 and securely close above it. Such a scenario is unlikely to materialize today.

Thursday brought little economic news from both the UK and the US, although President Donald Trump did speak, calling for the Federal Open Market Committee (FOMC) to cut rates. It's important to note that the Federal Reserve's plans differ significantly from those of the newly inaugurated U.S. president. Their objectives diverge as well. Next week, the Fed will hold its first meeting of the year. While traders do not expect any changes to monetary policy parameters, Trump's remarks yesterday make Fed Chair Jerome Powell's upcoming comments highly anticipated.

If Powell shows leniency and hints at a willingness to accelerate rate cuts, bearish traders will retreat further. Currently, the market expects no more than two 0.25% rate cuts from the Fed in 2025. However, if Powell signals the possibility of more aggressive easing, the dollar could face significant challenges. The current bullish trend is very weak and could end at any moment. Trump cannot consistently support dollar bears every day.

On the 4-hour chart, the pair may continue to grow within a downward trend channel. However, the hourly chart indicates the likelihood of bears regaining control in the near term. For now, I recommend focusing more on the hourly chart. No divergence signals are observed in any indicators today.

Commitments of Traders (COT) Report

The sentiment among the "Non-commercial" category of traders became significantly more bearish last week. The number of long positions held by speculators decreased by 786, while short positions increased by 13,282. Bulls have lost all their market advantage, a process that has unfolded over several months. The gap between long and short positions is now non-existent, with both at 80,000.

In my view, the pound retains the potential for further declines, and COT reports indicate growing bearish positions nearly every week. Over the past three months, long positions have decreased from 161,000 to 80,000, while short positions have risen from 67,000 to 80,000. I expect professional players to continue shedding long positions or increasing shorts over time, as all possible factors for buying the British pound have already been priced in. Graphical analysis also supports the pound's decline.

Economic Calendar for the UK and US:

• UK: Services PMI (09:30 UTC)
• UK: Manufacturing PMI (09:30 UTC)
• US: Services PMI (14:45 UTC)
• US: Manufacturing PMI (14:45 UTC)
• US: New Home Sales (15:00 UTC)
• US: Consumer Sentiment Index (15:00 UTC)

Friday's economic calendar includes several noteworthy events. The influence of the news background on market sentiment may be moderate throughout the day.

GBP/USD Forecast and Trading Recommendations:

Selling opportunities will arise if the pair consolidates below the ascending trend channel on the hourly chart. Buying opportunities remain viable, given that the pair closed above the 1.2363–1.2370 zone on the hourly chart. However, the influence of today's economic news could negate any potential gains.

Fibonacci levels are plotted at 1.3000–1.3432 on the hourly chart and 1.2299–1.3432 on the 4-hour chart.

The material has been provided by InstaForex Company - www.instaforex.com.

2025 Outlook: Optimism for GE and Elevance, American Airlines Slips

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Investment Triumph

The S&P 500 set a new closing record on Thursday. The breakout came as investors scrutinized earnings results and pondered former President Donald Trump's recent comments. His comments on lower interest rates and lower oil prices have piqued market interest.

Trump at Davos: Challenges and Demands

Speaking at the World Economic Forum in Davos, Switzerland, Trump called on OPEC to reduce oil prices and urged central banks to cut interest rates. Moreover, he warned the global business community about the possibility of tariffs on products made outside the United States. These statements have become a new talking point among investors and analysts.

Optimism Amid Worries

"Investors like the idea of lower rates and lower oil prices," said Lindsay Bell, chief strategist at 248 Ventures. According to her, the market reaction shows cautious optimism. Despite this, market participants are wary of the possibility of higher inflation due to tariff threats. These factors could slow further rate cuts by the Federal Reserve.

What's Next?

The Fed is expected to keep rates unchanged next week, the first meeting of the regulator in the new year. Meanwhile, investors continue to closely monitor economic signals, trying to predict how Trump's statements and the Federal Reserve's policies will interact.

This tense mix of factors, on the one hand, fuels the market's growth, and on the other, maintains a certain caution in the actions of players. The mood for optimism is still dominant, but the threat of tariffs and their possible consequences remain a significant risk.

The Fed remains true to its principles

Peter Tooze, president of Chase Investment Counsel in Virginia, is confident that the Federal Reserve will base its decisions on objective economic data, and not on political statements. According to him, even Trump's insistent demands are unlikely to influence the regulator's decisions.

"The president's comments on rates are unlikely to have a significant impact on the Fed," Tooze emphasized. "Decisions will be made solely based on an analysis of current economic data."

Market reaction: a mix of news and expectations

Thursday was a landmark day on Wall Street: all three key indexes showed growth for the fourth day in a row. Market participants noted that both corporate earnings reports and potential policy changes were weighing on investor sentiment.

The S&P 500 (.SPX) rose 32.34 points, or 0.53%, to 6,118.71. It was the index's first record close since December 6, when it was on the verge of hitting a new high the day before.

The Dow Jones Industrial Average (.DJI) was even more impressive, adding 408.34 points, or 0.92%, to end the day at 44,565.07. The Nasdaq Composite (.IXIC) rose 44.34 points, or 0.22%, to 20,053.68.

Sectors Leading: Healthcare and Industrials

All 11 sectors of the S&P 500 ended the trading day with positive dynamics. Healthcare stocks (.SPXHC) were particularly strong, jumping 1.35%, while industrials (.SPLRCI) added 0.96%.

The banking sector (.SPXBK) also showed strong gains. The index closed the day up 0.73%, hitting a record high during trading.

What's next for investors?

The current trends suggest that the market is confident of its upward movement. However, questions remain about the possible impact of tariffs and how they might affect inflation and the Fed's decisions. Investors remain cautious, although optimism continues to fuel stock index gains.

Energy emerges as a favorite

The utilities sector (.SPLRCU), despite slowing to 0.47%, remains in the spotlight. Energy companies showed particular momentum. Donald Trump's statement at the World Economic Forum about the need to double energy capacity to support the rapid development of artificial intelligence has become an impetus for the growth of shares of a number of companies.

Energy Sector Leaders

Constellation Energy (CEG.O) posted an impressive 4.1% gain, followed by AES Corp (AES.N), which rose 3.6%. Vistra Corp (VST.N) rounded out the top three with a 2.7% gain. The impact of artificial intelligence on energy infrastructure is becoming clear, and the market is reacting to these prospects.

Tech Loses Momentum

The tech sector (.SPLRCT), which rose 2.5% yesterday after Trump announced a $500 billion private investment in AI infrastructure, showed more modest results on Thursday. It rose just 0.12%. Despite this, the sector remains in the focus of long-term investors.

Claims: Surprising Increase

The Labor Department reported that jobless claims totaled 223,000, slightly above the 220,000 forecast. The increase was a minor surprise for analysts, but did not have a major impact on overall market sentiment.

Company Earnings: Highs and Lows

Among the companies that pleased investors, GE Aerospace (GE.N) stood out. Its shares soared 6.6% after publishing optimistic profit forecasts for 2025. Insurer Elevance (ELV.N) was also up 2.7%, thanks to a strong fourth-quarter result.

But not all reports were positive. Electronic Arts (EA.O) shares plunged 16.7% after the company cut its full-year bookings forecast. American Airlines (AAL.O) also disappointed investors, missing 2025 earnings estimates and sending shares down 8.7%.

Takeaways: Investing in the Future

Energy and artificial intelligence remain key growth areas, but volatility in specific sectors such as technology and airlines reminds investors to be mindful of risks. The market continues to teeter between optimism and caution, with unemployment data and corporate earnings adding further nuance to the picture.

Record interest in Europe

European companies are showing signs of solid earnings growth for the third straight quarter, giving investors hope despite ongoing political and economic turmoil and threats of tariffs from the US.

January was a banner month for European markets, with the rate of investment inflows the second-fastest in 25 years, according to Bank of America. This happened even before the first corporate earnings reports and despite Donald Trump's tougher rhetoric towards the EU.

Tariff threats and rising tensions

Despite the optimism, there is anxiety in the air. Trump's statements about the possible introduction of tariffs on EU imports are increasing tensions. Against this backdrop, Germany and France, the two key engines of the eurozone economy, are facing a slowdown in growth, while Italy remains in an industrial recession. These factors make it difficult to achieve a sustainable recovery.

Flagships of the reporting season

This week, investors' attention is focused on a number of large European companies. On Tuesday, luxury goods market leader LVMH (.LVMH.PA) will report its results. On Wednesday, Dutch computer equipment maker ASML (ASML.AS) will report its financial results, and on Thursday, Deutsche Bank (DBKGn.DE) will report. Next week, attention will be focused on Danish pharmaceutical giant Novo Nordisk (NOVOb.CO).

There are already examples of successful reports. On January 16, shares of Swiss luxury goods maker Richemont (CFR.S) soared, posting their biggest daily gain in 16 years after fourth-quarter sales beat expectations.

Economic Reality: US Leads, Europe Lagging

The latest surveys of business activity show that the eurozone's largest economies – Germany, France and Italy – are in the grip of an industrial recession. This contrasts with the US, where strong economic growth continues to underpin global performance. This gap is hurting the competitiveness of European companies and their earnings.

Weak Euro Gives an Advantage

Another driver for European stocks has been the weak euro, which has lost about 4.5% of its value over the past year. A cheaper euro makes exports more competitive, supporting demand for the region's products.

Prospects in Question

Despite a strong influx of investment and early encouraging results, European markets remain under pressure from external and internal factors. Whether the region's companies can live up to investors' high expectations will become clear in the coming weeks. Meanwhile, market participants continue to balance between caution and hope for continued growth.

Most revenue comes from outside Europe

According to analysts at Goldman Sachs, about 60% of European companies' revenue is generated outside the continent. This highlights the region's significant reliance on global markets and trading partners. This situation creates both opportunities and risks, especially given the threat of tariffs from the US.

European stocks: a historic discount to the US market

European stocks are currently trading at the largest discount to the S&P 500 on record. According to LSEG Datastream, European companies are trading at a forward price-to-earnings (P/E) ratio of about 13.3, compared to 21.6 for US stocks. This highlights a significant difference in market valuations and potentially makes European assets more attractive to long-term investors.

Key predictions: Analysts' views

Many of these discounts and global risks are already priced into investors' strategies. However, as analysts note, an important element in decision-making will be what forecasts companies will make for the current year. Sectors that demonstrate resilience to external shocks may come into focus.

Lanxess's success: the American factor is on Germany's side

On Monday, shares in the German chemical company Lanxess (LXSG.DE) rose by 5.1%. The impetus for this was the company's announcement that its fourth-quarter profit would exceed market expectations by more than 20%. The main reason for this result was pre-purchases by American customers worried about tariff threats from the Donald Trump administration.

Expectation of certainty

The European market continues to grapple with challenges related to both domestic economic problems and global threats. Dependence on external revenue makes it particularly vulnerable, but at the same time provides unique opportunities for growth. The question is whether companies in the region will be able to take advantage of these opportunities and meet investor expectations while remaining competitive in the face of global turbulence.

The material has been provided by InstaForex Company - www.instaforex.com.

Forex forecast 24/01/2025: EUR/USD, GBP/USD, USD/JPY and Bitcoin

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We introduce you to the daily updated section of Forex analytics where you will find reviews from forex experts, up-to-date monitoring of financial information as well as online forecasts of exchange rates of the US dollar, euro, ruble, bitcoin, and other currencies for today, tomorrow and this trading week.

Video Agenda:

00:00 INTRO00:14 Totay's key events: HCOB Germany Manufacturing PMI, S&P Global Manufacturing PMI, S&P Global Services PMI, Existing Home Sales 02:40 EUR/USD04:34 USDX06:28 GBP/USD07:57 USD/JPY10:26 BTC/USD

Useful links:

My other articles are available in this section

InstaForex course for beginners

Popular Analytics

Open trading account

Important:

The begginers in forex trading need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp market fluctuations due to increased volatility. If you decide to trade during the news release, then always place stop orders to minimize losses.

Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes. For successful trading, you need to have a clear trading plan and stay focues and disciplined. Spontaneous trading decision based on the current market situation is an inherently losing strategy for a scalper or daytrader.

#instaforex #analysis #sebastianseliga

The material has been provided by InstaForex Company - www.instaforex.com.

EUR/USD and GBP/USD on January 24 - Technical Analysis of the Situation

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EUR/USD

Higher Timeframes

Bullish traders are looking to maintain their current positions and potentially push the pair higher. Since today is Friday, the weekly close will be significant. An ideal scenario for the bulls would be a weekly candle with minimal upper shadow. The nearest upward target is the lower boundary of the daily Ichimoku cloud at 1.0520, followed by weekly resistance at 1.0575 and monthly resistance at 1.0597. On the other hand, bearish traders are focused on the influence zone of the weekly short-term trend at 1.0404. Trading below this level would lead to a test of the daily Ichimoku cross supports at 1.0385, 1.0355, 1.0346, and 1.0307. If the cross is broken, bearish plans may resume, targeting 1.0179.

H4 – H1

On the lower timeframes, bullish traders still hold the primary advantage and are attempting to break through the tested H4 Ichimoku cloud breakout target at 1.0437 to continue their upward movement. Intraday bullish targets include the classic Pivot resistance levels, with R2 at 1.0474 and R3 at 1.0509, which have not yet been reached today. However, a corrective decline and a break below the key levels converging around 1.0409 to 1.0383 (daily central Pivot level plus weekly long-term trend) could disrupt the current balance of power. Such a shift would render bearish intraday targets relevant again, including support levels at the classic Pivot points (1.0379, 1.0344, 1.0314).

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GBP/USD

Higher Timeframes

On the last trading day of the week, bullish players have begun testing resistance levels clustered around 1.2411, 1.2425, 1.2456, and 1.2485. A successful breakout above these levels would enable bulls to achieve key objectives, such as overcoming the daily Ichimoku dead cross and regaining the weekly short-term trend. However, if the bulls fail to break through, the pair will likely interact with the nearest support zone at 1.2338, 1.2301, and 1.2277, which correspond to the daily Ichimoku cross levels and the upper boundary of the monthly Ichimoku cloud.

H4 – H1

Bullish players continue to hold the advantage on lower timeframes. On the H4 chart, an upward target has been established for breaking the Ichimoku cloud at 1.2528 and 1.2575. Additional intraday resistance levels include the classic Pivot levels at 1.2420 and 1.2446. Key levels to watch today are at 1.2338 and 1.2290, which correspond to the daily central Pivot level and the weekly long-term trend. A break below these levels could lead to a trend reversal, altering the current balance of power. Additional targets for bearish players include the classic Pivot support levels at 1.2302, 1.2256, and 1.2220.

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Technical Analysis Components:

• Higher Timeframes: Ichimoku Kinko Hyo (9.26.52) and Fibonacci Kijun levels
• H1: Classic Pivot Points and 120-period Moving Average (weekly long-term trend)

The material has been provided by InstaForex Company - www.instaforex.com.

Stock Market Update: S&P 500 and NASDAQ Hit New Yearly Highs

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After Donald Trump's speech in Davos yesterday, S&P 500 futures rose by over 0.7% and continue to trade positively. The tech-heavy NASDAQ gained approximately 0.6%, thanks to Trump's signing of an executive order on AI funding. Meanwhile, the industrial Dow Jones remains relatively flat.

It's important to note that U.S. stocks have now increased for the ninth consecutive day, reaching a new all-time high. This surge is attributed to President Trump's comments suggesting a potentially softer approach to tariffs on China. Additionally, the Japanese yen strengthened following an interest rate hike by the Bank of Japan. Chinese stocks experienced a significant surge, and the yuan continued its rally after Trump stated in an interview that he would prefer not to impose tariffs on China, the world's second-largest economy.

The situation seems to be easing from the worst fears regarding U.S. tariffs. While it's too early to say for sure—and Trump is fickle—there are increasing signs that U.S. trade policy toward China is open to negotiation. In this context, yields on 10-year Treasury bonds have declined.

Trump's remarks could also indicate a willingness to negotiate with Beijing before resorting to significant tariffs on Chinese imports. Nevertheless, it's hard to imagine Trump completely backing away from his tariff threats, so market growth might continue only until these threats materialize into concrete actions.

As I noted above, in Japan, the yen strengthened against the greenback after the BOJ raised interest rates for the first time since July. It briefly broke the key 155 level against the dollar during Governor Kazuo Ueda's press conference, then retreated as traders digested his comments. The central bank has signaled that it expects inflation to be faster than it had previously forecast in the coming years. The BOJ also said that if its forecast comes true, it will continue to raise interest rates.

Investor sentiment is somewhat optimistic about the Trump administration's ability to implement measures that will stimulate stock growth while controlling inflationary pressures. This would allow the Federal Reserve to continue easing monetary policy this year. Interest is growing in sectors linked to infrastructure and high technology, tied to the administration's plans for significant investment projects. Furthermore, optimism is supported by discussions of potential tax reforms, which could further boost business and consumer spending.

However, caution is warranted: geopolitical tensions and unpredictable decisions could alter this optimistic scenario. Nevertheless, current market sentiment reflects a readiness for a positive outlook, enabling many market participants to seize the opportunities available.

Demand for the S&P 500 remains strong. The main objective for buyers today is to break through the nearest resistance level at $6,116. If they succeed, it will sustain the upward trend and pave the way for a rally to $6,125. Another key target for bulls will be to gain control over $6,137, which would further solidify their position. If there's a downward movement due to a decreased risk appetite, buyers need to step in around $6,105. If they fail to maintain this level, the price could quickly drop to $6,092, potentially leading to a decline toward $6,079.

The material has been provided by InstaForex Company - www.instaforex.com.

Trading Recommendations for the Cryptocurrency Market on January 24

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Bitcoin and Ethereum experienced a correction ahead of Donald Trump's speech, but, as is often the case, they rebounded strongly following the positive news that emerged afterward.

Bitcoin initially climbed above the $106,000 mark but corrected back to the $102,000 range during today's Asian session. Meanwhile, Ethereum demonstrated greater resilience, rising to $3,285 based on Trump's statements and breaking through a significant resistance level around $3,400 today.

According to Glassnode metrics, Bitcoin's current 60-day price range is exceptionally narrow. Historically, such periods of tight price ranges often precede a surge in volatility and a strengthening of Bitcoin. These narrow ranges signal a market in a state of anticipation. Investors typically analyze influencing factors before deciding to buy or sell. During uncertainty, trade volumes decline, reducing liquidity and increasing the potential for sharp price movements in either direction. Historically, after periods of sideways movement, cryptocurrencies often experience a surge in interest from both retail and institutional investors. This surge may be triggered by news, economic events, or shifts in public sentiment toward Bitcoin. It's important to note that this volatility can be either positive or negative.

Yesterday's speech by Trump served as another catalyst for buying Bitcoin and other digital assets. However, the market's failure to reach a new all-time high indicates challenges in sustaining buying momentum at current levels. For Bitcoin to break above $110,000, it will likely need support from large investors, who are currently missing from the market. This situation raises the likelihood of another sharp sell-off, potentially bringing Bitcoin back down to the $90,000 level. Traders should exercise caution.

Despite these challenges, Trump's remarks about the need for innovative financial instruments and decentralized assets have sparked investor interest in Bitcoin and other digital currencies. Trump highlighted that traditional financial systems are often prone to manipulation and crises, making alternative assets increasingly relevant. Many experts now predict that such statements will accelerate the mass adoption of cryptocurrencies. Additionally, rumors that more than half of Trump's assets are invested in various digital currencies are fueling speculation about the continuation of the crypto bull market.

For my intraday strategy in the cryptocurrency market, I plan to continue taking action, especially during any major pullbacks of Bitcoin and Ethereum. I am optimistic about the continuation of the bull market in the medium term, which still appears intact.

Regarding short-term trading, I have outlined my strategy and conditions below.

Bitcoin

Buy Scenario

Scenario #1: I will buy Bitcoin today upon reaching the entry point around $105,350, targeting a rise to $107,500. Around $107,500, I will exit the purchases and sell immediately on a pullback. Before buying on a breakout, ensure that the 50-day moving average is below the current price and that the Awesome Oscillator is in the positive zone.

Scenario #2: Bitcoin can also be bought from the lower boundary of $103,600, provided there is no market reaction indicating a breakdown, aiming for levels of $105,350 and $107,500.

Sell Scenario

Scenario #1: I will sell Bitcoin today upon reaching the entry point around $103,600, targeting a drop to $101,100. Around $101,100, I will exit the sales and buy immediately on a pullback. Before selling on a breakout, ensure that the 50-day moving average is above the current price and that the Awesome Oscillator is in the negative zone.

Scenario #2: Bitcoin can also be sold from the upper boundary of $105,350, provided there is no market reaction indicating a breakout, aiming for levels $103,600 and $101,100.

Ethereum

Buy Scenario

Scenario #1: Upon reaching the entry point around $3,388, I will buy Ethereum today, targeting a rise to $3,486. Around $3,486, I will exit the purchases and sell immediately on a pullback. Before buying on a breakout, ensure that the 50-day moving average is below the current price and that the Awesome Oscillator is in the positive zone.

Scenario #2: Ethereum can also be bought from the lower boundary of $3,318, provided there is no market reaction indicating a breakdown, aiming for levels $3,388 and $3,486.

Sell Scenario

Scenario #1: I will sell Ethereum today upon reaching the entry point around $3,318, targeting a drop to $3,211. Around $3,211, I will exit the sales and buy immediately on a pullback. Before selling on a breakout, ensure that the 50-day moving average is above the current price and that the Awesome Oscillator is in the negative zone.

Scenario #2: Ethereum can also be sold from the upper boundary of $3,388, provided there is no market reaction indicating a breakout, aiming for levels $3,318 and $3,211.

The material has been provided by InstaForex Company - www.instaforex.com.

USD/JPY: Simple Trading Tips for Beginner Traders on January 24. Analysis of Yesterday's Forex Trades

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Analysis of Trades and Trading Tips for the Japanese Yen

The test of the 156.33 price level occurred when the MACD indicator was just beginning to move downward from the zero mark, confirming a valid market entry point for selling the dollar. As a result, the pair fell to the target level of 155.83. Before this, there was another test of 156.33; however, at that time, the MACD indicator had already significantly dropped below the zero mark.

During the Asian session, the yen strengthened notably against the dollar after the Bank of Japan raised its key interest rate to the highest level in 17 years and adopted a more optimistic outlook on inflation. This development boosted expectations for further rate hikes and supported the yen. Governor Ueda and other board members increased the rate by a quarter percentage point to 0.5%, but this move had already been mostly priced into market expectations. Traders are now looking for new signals regarding the central bank's next steps.

The BOJ highlighted the stability of currencies and stock indices, indicating optimism for sustainable global economic growth. However, financial market participants are remaining cautiously optimistic as they closely monitor potential economic initiatives from the new U.S. administration. This sets the stage for short-term strength in the yen.

For my intraday strategy, I will focus mainly on implementing Scenarios #1 and #2 outlined below.

Buy Signal

Scenario #1: I plan to buy USD/JPY today at 155.63 (green line on the chart) with a target of 156.44 (thicker green line on the chart). At 156.44, I plan to exit purchases and open short positions, expecting a 30-35 pip retracement from the level. It's best to return to buying the pair during corrections or significant dips in USD/JPY. Important: Before buying, ensure that the MACD indicator is above the zero mark and just beginning to rise.

Scenario #2: I also plan to buy USD/JPY today if the price tests the 155.07 level twice consecutively, with the MACD indicator in the oversold zone. This will limit the pair's downside potential and lead to an upward market reversal. Growth toward the 155.63 and 156.44 levels can be anticipated.

Sell Signal

Scenario #1: I plan to sell USD/JPY today only after a breakout below the 155.07 level (red line on the chart), which could lead to a rapid decline in the pair. The primary target for sellers will be 154.36, where I plan to exit sales and immediately open long positions, expecting a 20-25 pip rebound from the level. Pressure on the pair can return at any moment. Important: Before selling, ensure that the MACD indicator is below the zero mark and beginning to decline.

Scenario #2: I also plan to sell USD/JPY today if the price tests the 155.63 level twice consecutively, with the MACD indicator in the overbought zone. This will limit the pair's upside potential and lead to a market reversal downward. Declines toward the 155.07 and 154.36 levels can be expected.

Chart Notes

• Thin green line: Entry price for buying the trading instrument.
• Thick green line: A suggested target for Take Profit or manually locking in profits, as further growth above this level is unlikely.
• Thin red line: Entry price for selling the trading instrument.
• Thick red line: A suggested target for Take Profit or manually locking in profits, as further decline below this level is unlikely.
• MACD Indicator: Critical for identifying overbought and oversold zones to guide market entry decisions.

Important Note for Beginner Traders

• Always approach market entry decisions cautiously.
• Avoid trading during major news releases to sidestep volatile price swings.
• If trading during news releases, always set stop-loss orders to minimize losses.
• Trading without stop-loss orders or money management practices can quickly deplete your deposit, especially when using large volumes.
• A clear trading plan, like the one outlined above, is essential for successful trading. Spontaneous trading decisions based on current market conditions are inherently disadvantageous for intraday traders.

The material has been provided by InstaForex Company - www.instaforex.com.

GBP/USD: Simple Trading Tips for Beginner Traders on January 24. Analysis of Yesterday's Forex Trades

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Analysis of Trades and Trading Tips for the British Pound

The test of the 1.2335 price level in the afternoon occurred when the MACD indicator had just begun to move upward from the zero mark, confirming a valid entry point for buying the pound. As a result, the pair rose by more than 40 pips. However, selling at the 1.2313 level did not yield the expected profit.

Additionally, Donald Trump's recent speech regarding trade tariffs and new duties did not mention the UK, allowing the British pound to recover its positions. This absence of reference created optimism that the UK might avoid trade conflicts, encouraging traders to view the British market as a viable alternative. The lack of mentions of the UK in the context of trade tariffs might also indicate that the US seeks more balanced relations, which could open up new opportunities for trade cooperation between the two nations and lay a positive foundation for further growth of the pound.

Today, several data releases are expected that could impact the pound. If the PMI figures exceed expectations, the pound may strengthen as investors look to capitalize on the potential for the Bank of England to maintain interest rates. A recovery in the manufacturing sector would indicate economic health and enhance confidence in the BoE's monetary policy. Conversely, if the data falls short of forecasts, the pound could face pressure, resulting in corrections on the charts. In such a scenario, investors might start closing long positions in anticipation of further weakness in the pound.

As for my intraday strategy, I will primarily rely on the implementation of Scenarios #1 and #2 outlined below.

Buy Signal

Scenario #1: I plan to buy the pound today at 1.2417 (green line on the chart) with a target of 1.2459 (thicker green line on the chart). At 1.2459, I plan to exit purchases and open short positions, expecting a 30-35 pip retracement from the entry point. Pound growth can be expected following strong data. Important: Before buying, ensure that the MACD indicator is above the zero mark and just beginning to rise.

Scenario #2: I also plan to buy the pound today if the price tests the 1.2383 level twice consecutively, with the MACD indicator in the oversold zone. This will limit the pair's downside potential and lead to an upward market reversal. Growth toward the 1.2417 and 1.2459 levels can be anticipated.

Sell Signal

Scenario #1: I plan to sell the pound today after a breakout below the 1.2383 level (red line on the chart), which could lead to a rapid decline in the pair. The primary target for sellers will be 1.2341, where I plan to exit sales and open immediate long positions, expecting a 20-25 pip rebound from the level. Selling the pound is preferable at higher levels in anticipation of a return to the bearish trend. Important: Before selling, ensure that the MACD indicator is below the zero mark and beginning to decline.

Scenario #2: I plan to sell the pound today if the price tests the 1.2417 level twice consecutively, with the MACD indicator in the overbought zone. This will limit the pair's upside potential and lead to a market reversal downward. Declines toward the 1.2383 and 1.2341 levels can be expected.

Chart Notes

• Thin green line: Entry price for buying the trading instrument.
• Thick green line: A suggested target for Take Profit or manually locking in profits, as further growth above this level is unlikely.
• Thin red line: Entry price for selling the trading instrument.
• Thick red line: A suggested target for Take Profit or manually locking in profits, as further decline below this level is unlikely.
• MACD Indicator: Critical for identifying overbought and oversold zones to guide market entry decisions.

Important Note for Beginner Traders

• Always approach market entry decisions cautiously.
• Avoid trading during major news releases to sidestep volatile price swings.
• If trading during news releases, always set stop-loss orders to minimize losses.
• Trading without stop-loss orders or money management practices can quickly deplete your deposit, especially when using large volumes.
• A clear trading plan, like the one outlined above, is essential for successful trading. Spontaneous trading decisions based on current market conditions are inherently disadvantageous for intraday traders.

The material has been provided by InstaForex Company - www.instaforex.com.

EUR/USD: Simple Trading Tips for Beginner Traders on January 24. Analysis of Yesterday's Forex Trades

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Analysis of Trades and Trading Tips for the Euro

In the afternoon, the price tested 1.0403 at a time when the MACD indicator had just started to move down from the zero mark, which confirmed it as a suitable entry point into the market. Despite this, the pair did not experience a significant decline; instead, after a brief drop of 10 pips, demand for the euro returned.

The primary factor influencing this movement was Trump's speech. His threats regarding trade tariffs have raised concerns about the future of US-European trade relations, although no concrete measures have been implemented yet. In recent years, the world has witnessed multiple trade wars, and each new action from Trump's administration tends to trigger investor anxiety. European countries are also not remaining passive; some are discussing countermeasures to protect their markets from potential tariff increases. This atmosphere of uncertainty could negatively affect economic growth in both the United States and Europe. However, since these discussions are still purely speculative, the euro continues to strengthen.

Today, important data on the Eurozone's economic activity is expected to be released. Investors will closely monitor these figures, as they could significantly impact the overall state of the Eurozone. The anticipated indicators for manufacturing and services PMIs (Purchasing Managers' Index) may provide crucial insights into the region's economic recovery in the face of ongoing inflation and global uncertainty. Mixed results could indicate instability across different sectors: while manufacturing may show signs of slowing down, the services sector might reveal growth, leading to divergent investor expectations. This sentiment could support the euro while putting downward pressure on the US dollar.

However, any signs of weakness in the Eurozone economy could raise questions about the future actions of the European Central Bank (ECB). If the data falls below forecasts, there may be expectations for a more dovish stance from the ECB, which could potentially weaken the euro.

Today's strategy will primarily focus on implementing Scenario #1 and Scenario #2 outlined below.

Buy Signal

Scenario #1: Buy the euro at 1.0470 (green line on the chart) with a target of 1.0523. At 1.0523, exit the market and sell the euro in the opposite direction, expecting a 30-35 pip retracement from the entry point. Counting on euro growth in the first half of the day is only advisable if the data are highly favorable. Important: Before buying, ensure the MACD indicator is above the zero mark and beginning to rise.

Scenario #2: Consider buying the euro in case of two consecutive tests of the 1.0437 level when the MACD indicator is in the oversold zone. This will limit the pair's downside potential and lead to an upward market reversal. Growth toward the 1.0470 and 1.0523 levels can be expected.

Sell Signal

Scenario #1: Sell the euro after reaching the 1.0437 level (red line on the chart). The target will be 1.0394, where positions should be closed. Immediate purchases in the opposite direction can be considered, expecting a 20-25 pip rebound from the level. Pressure on the pair could return at any moment. Important: Before selling, ensure the MACD indicator is below the zero mark and just beginning to decline from it.

Scenario #2: Also consider selling the euro in case of two consecutive tests of the 1.0470 level when the MACD indicator is in the overbought zone. This will limit the pair's upside potential and lead to a market reversal downward. Declines toward the 1.0437 and 1.0394 levels can be expected.

Chart Notes

• Thin green line: Entry price for buying the trading instrument.
• Thick green line: A suggested target for Take Profit or manually locking in profits, as further growth above this level is unlikely.
• Thin red line: Entry price for selling the trading instrument.
• Thick red line: A suggested target for Take Profit or manually locking in profits, as further decline below this level is unlikely.
• MACD Indicator: Critical for identifying overbought and oversold zones to guide market entry decisions.

Important Note for Beginner Traders

• Always approach market entry decisions cautiously.
• Avoid trading during major news releases to sidestep volatile price swings.
• If trading during news releases, always set stop-loss orders to minimize losses.
• Trading without stop-loss orders or money management practices can quickly deplete your deposit, especially when using large volumes.
• A clear trading plan, like the one outlined above, is essential for successful trading. Spontaneous trading decisions based on current market conditions are inherently disadvantageous for intraday traders.

The material has been provided by InstaForex Company - www.instaforex.com.

Intraday Strategies for Beginner Traders on January 24

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The euro and the pound continued to strengthen against the US dollar, primarily influenced by President Trump's speech in Davos.

Trump's remarks on US monetary policy caught traders off guard, prompting them to sell the US dollar amid concerns that the Federal Reserve might adopt the new president's proposals, although this is highly unlikely. Trump expressed his desire to advocate for lower interest rates to promote more stable growth in the US economy. This led to speculation among traders and triggered a sell-off of the dollar, contributing to its decline in international markets.

Today, in the first half of the day, key data will be released, including the Eurozone Manufacturing PMI, Services PMI, and the Composite PMI for January. Since the manufacturing sector continues to strain the Eurozone's economy, further growth of the euro remains uncertain.

European Central Bank President Christine Lagarde's speech later today is expected to be a significant event for financial markets. Given the ongoing economic challenges in Europe, any comments she makes could lead to strong market reactions. However, many experts believe her remarks will likely reiterate points already outlined earlier this week, particularly her focus on inflation expectations and the pressures on monetary policy. With recent inflation data in mind, investors will be closely monitoring any hints of changes in the ECB's strategy.

In the UK, the pound may experience growth in the first half of the day if the UK Manufacturing PMI, Services PMI, and Composite PMI figures exceed expectations. Positive data could strengthen the pound and draw investor interest. However, considering the contraction in the UK's manufacturing sector, this might signal ongoing economic challenges, potentially prompting the Bank of England to implement more aggressive rate cuts, which could weaken the pound.

If the incoming data aligns with economists' expectations, a Mean Reversion Strategy may be the best approach. However, if the figures deviate significantly from forecasts, a Momentum Strategy would be more appropriate.

Momentum Strategy (Breakout)

EUR/USD

• Buy on a breakout above 1.0454 may lead to the euro rising to the area of 1.0496 and 1.0534;
• Sell on a breakout below 1.0414 may lead to the euro falling to the area of 1.0375 and 1.0343;

GBP/USD

• Buy on a breakout above 1.2412 may lead to the pound rising to the area of 1.2449 and 1.2490;
• Sell on a breakout below 1.2370 may lead to the pound falling to the area of 1.2336 and 1.2301;

USD/JPY

• Buy on a breakout above 155.55 may lead to the dollar rising to the area of 155.87 and 156.19;
• Sell on a breakout below 155.19 may lead to dollar sell-offs in the 154.85 and 154.55;

Mean Reversion Strategy

EUR/USD

• Look for sells after a failed breakout above 1.0478, with a return below this level.
• Look for buys after a failed breakout below 1.0437, with a return to this level.

GBP/USD

• Look for sells after a failed breakout above 1.2431, with a return below this level.
• Look for buys after a failed breakout below 1.2378, with a return to this level.

AUD/USD

• Look for sells after a failed breakout above 0.6352, with a return below this level.
• Look for buys after a failed breakout below 0.6306, with a return to this level.

USD/CAD

• Look for sells after a failed breakout above 1.4349, with a return below this level.
• Look for buys after a failed breakout below 1.4291, with a return to this level.

The material has been provided by InstaForex Company - www.instaforex.com.

How to Trade the GBP/USD Pair on January 24? Simple Tips and Trade Analysis for Beginners

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Analysis of Thursday's Trades

1H Chart of GBP/USD

On Thursday, the GBP/USD pair continued to rise, even though there were no local macroeconomic or fundamental factors driving this movement. Throughout the day, neither the US nor the UK published any significant reports. The jobless claims report from the US had little potential to influence the currency pair, as its actual figure closely matched the forecast. Consequently, there was nothing for market participants to respond to. The upward correction is still ongoing, as indicated by the price's position above the trendline, and this trend does not rely heavily on constant news or reports.

However, today, there will be a considerable amount of macroeconomic information released, which means the pair could either rise or fall with equal likelihood. We would like to emphasize to novice traders that the current movement is primarily corrective in nature.

5M Chart of GBP/USD

In the 5-minute time frame on Thursday, the currency pair generated three trading signals near the 1.2301 level, which has recently transformed from 1.2316. As a result, the 1.2316 level was not relevant yesterday. For most of the day, the British pound traded sideways, only showing a significant upward movement in the evening. A rebound from the 1.2372 level could have been traded, but this signal was formed relatively late in the day.

Trading Strategy for Friday:

In the hourly time frame, the GBP/USD pair has begun a short-term upward trend, which is primarily a correction. From a medium-term perspective, we fully anticipate a decline in the pound toward the 1.1800 level, as we believe this is the most likely scenario. Therefore, traders should expect a drop, and the trendline will indicate the completion of the current correction.

On Friday, the GBP/USD pair may continue to trade relatively calmly, with the day's direction largely influenced by the macroeconomic backdrop. For the first time this week, reports may have a significant impact on the pair's movement.

On the 5-minute time frame, trading is currently possible at the following levels: 1.2010, 1.2052, 1.2089-1.2107, 1.2164-1.2170, 1.2241-1.2270, 1.2301, 1.2372-1.2387, 1.2445, 1.2502-1.2508, 1.2547, 1.2633, 1.2680-1.2685, 1.2723, and 1.2791-1.2798. On Friday, business activity indices for the services and manufacturing sectors are set to be released in both the UK and the US. Additionally, the University of Michigan Consumer Sentiment Index will be published in the US. These reports have moderate importance but could still provoke a market reaction.

Core Trading System Rules:

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 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.

The material has been provided by InstaForex Company - www.instaforex.com.

How to Trade the EUR/USD Pair on January 24? Simple Tips and Trade Analysis for Beginners

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Analysis of Thursday's Trades

1H Chart of EUR/USD

On Thursday, the EUR/USD currency pair returned to the 1.0451 level. The local upward trend remains intact as the price continues to trade above the trendline. There were no fundamental reasons for the euro to rise yesterday; however, such reasons are not necessary during a corrective move. A correction is essentially a period when market participants close their trades to lock in profits. The balance of supply and demand changes, which leads to movement. In this case, the current movement is driven by position closures rather than new trades initiated based on specific information.

Yesterday, there were no significant events in either the US or the Eurozone. Donald Trump continues to issue statements and directives to various countries, advising them on how to avoid being placed on the US "blacklist," but the market has largely stopped reacting to his comments. As a result, the correction persists, and there are currently no indications of a downtrend resuming.

5M Chart of EUR/USD

On the 5-minute time frame on Thursday, only one trading signal was generated. The price bounced off the 1.0433-1.0451 area but did not show a significant downward movement. The signal appeared relatively late in the day, which likely caused many traders to miss it.

Trading Strategy for Friday:

On the hourly time frame, the EUR/USD pair is currently in a medium-term downtrend, although there is a local uptrend. As previously mentioned, the euro is expected to weaken, as the fundamental and macroeconomic conditions continue to favor the US dollar. The market is currently undergoing a correction that is supported by the trendline. The end of this correction will be confirmed once the trendline is broken.

Movements in the market on Friday are expected to be relatively modest, with the euro likely continuing its slow upward trend. If the euro breaks above the 1.0451 level, it could lead to further upward movement. However, a significant rally for the pair seems unlikely.

On the 5-minute time frame, the following levels should be monitored: 1.0156, 1.0221, 1.0269-1.0277, 1.0334-1.0359, 1.0433-1.0451, 1.0526, 1.0596, 1.0678, 1.0726-1.0733, 1.0797-1.0804, and 1.0845-1.0851. Additionally, on Friday, PMI reports for the services and manufacturing sectors will be released in Germany, the Eurozone, and the US. These reports are significant data points, and their release may trigger market reactions during both the European and American trading sessions.

Core Trading System Rules:

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 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.

The material has been provided by InstaForex Company - www.instaforex.com.

What to Pay Attention to on January 24? A Breakdown of Fundamental Events for Beginners

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Analysis of Macroeconomic Reports:

There are numerous macroeconomic events scheduled for Friday. In Germany, the UK, the Eurozone, and the US, the PMI indices for the services and manufacturing sectors for January will be released. These indices are leading indicators of economic conditions. In other words, an increase in these indices signals potential positive changes in the economy. Unfortunately, European PMIs have rarely shown positive values recently. Nevertheless, the market will react to any deviations of the actual values from forecasts. Additionally, the University of Michigan Consumer Sentiment Index will be published in the US, which has a comparable impact on market sentiment as the PMIs.

Analysis of Fundamental Events:

One significant event on Friday is the speech by European Central Bank President Christine Lagarde. However, she already addressed the market on Wednesday and did not provide any fundamentally new insights. Next week, the ECB will hold its first meeting of the year, and the market is confident that interest rates will be cut by another 0.25%. In contrast, the Federal Reserve will conclude its meeting a day earlier and is expected to keep rates unchanged. As a result, the euro remains fundamentally weaker compared to the dollar. The current upward movement in the euro is merely a technical correction.

General Conclusions:

On the last trading day of the week, market movements will depend on the macroeconomic backdrop. Both currency pairs—EUR/USD and GBP/USD—are experiencing corrections, although these are not particularly strong. Overall, until the euro and pound consolidate firmly below their respective trend lines, it makes little sense to expect a resumption of the four-month downward trend. It may take a considerable amount of time for both pairs to correct before beginning a new phase in the main trend.

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.

The material has been provided by InstaForex Company - www.instaforex.com.