Macroeconomic Reports Overview:

There are no macroeconomic reports scheduled for Tuesday. Therefore, throughout the day, traders will only be able to react to fundamental events — and there will be quite a few of those. However, central bank officials' speeches are barely moving the market at this point for several reasons:

• First, policymakers are not providing any fundamentally new information.
• Second, the monetary policy outlooks for all three major central banks are already fairly clear to the market.

Key Fundamental Events to Watch:

Although macroeconomic data is absent, Tuesday features several key events.

In the Eurozone, European Central Bank President Christine Lagarde is scheduled to speak again. We don't expect anything notable from this appearance. Lagarde spoke three times last week and is scheduled for three speeches this week as well — yet none of her previous appearances brought any meaningful insights. The ECB currently has no plans to adjust its monetary policy, primarily because inflation levels do not warrant either rate hikes or cuts.

In the United States, members of the Federal Reserve's FOMC — including Stephen Mirran, Raphael Bostic, Michelle Bowman, and Neel Kashkari — will also deliver remarks. Do not expect anything groundbreaking here either.

• Mirran is expected to continue supporting the most aggressive rate-cut outlook.
• Michelle Bowman usually favors a more moderate approach.
• Kashkari and Bostic prefer a gradual approach to rate cuts based on macroeconomic data.

In short, nothing new.

Summary and Outlook:

During the second trading day of the week, both major pairs may continue to trade with low volatility and without a clear trend.

The British pound has completed its downward trend, and the euro has likely followed suit. However, an upward trend has not yet clearly begun for either pair.

For EUR/USD, a further rise can be expected if the pair bounces from the 1.1655–1.1666 area, targeting 1.1745–1.1754. For GBP/USD, a rise toward 1.3529 is likely if the price remains above the 1.3466–1.3475 area. If it consolidates below this area, a drop toward 1.3413–1.3421 is expected.

Core Trade System Rules:

1. Signal strength is determined by the time it takes for the signal to form (a bounce or breakout). The shorter the time, the stronger the signal.
2. If two or more false trades are made near a specific level, all future signals from that level should be ignored.
3. During flat (sideways) markets, any pair may either produce many false signals or none at all. When early signs of a flat appear, it's best to pause trading.
4. Trades should be opened between the start of the European session and the middle of the American session. After that, all trades should be closed manually.
5. On the hourly timeframe, MACD indicator signals should only be followed if there is significant volatility and a confirmed trend (as indicated by a trendline or channel).
6. If two levels are very close (within 5 to 20 pips), treat them as a support/resistance zone rather than individual levels.
7. Once a position is 15–20 pips in profit, move the Stop Loss to breakeven.

What's on the Charts:

Support and resistance price levels – these are the target zones for entering buy/sell trades. Take-profit orders can be placed near these levels.

Red lines – trendlines or trend channels that show the current market direction and preferred trade direction.

MACD indicator (settings: 14, 22, 3) – the histogram and signal line serve as additional signal sources.

Important speeches and economic reports (always listed in the economic calendar) can significantly affect currency pair movements. During their release, it's advised to trade with extreme caution or exit the market to avoid sharp price reversals against the previous trend.

Final Note for Beginners:

New forex traders must remember that not every trade will be profitable. Developing a clear trading strategy and practicing sound money management are essential for achieving long-term success in trading.