Analysis of macroeconomic reports:

There are few macroeconomic events on Monday. We will only highlight the US report on the ISM Manufacturing PMI. Take note that ISM indices are important indicators and often provoke a strong market reaction, especially if their values do not match the forecasts. However, we don't expect strong movements amid low volatility for both currency pairs. The market has been clearly resting for the past month, so we expect only a brief spike in volatility during the release of the ISM index, while the rest of the time we will continue to observe the same weak movements.

Analysis of fundamental events:

There are no fundamental events. However, we noticed that there was no market reaction to Federal Reserve Chief Jerome Powell's speech on Friday. So it seems that for now any fundamental event is of minor importance. The main problem is the market's lack of desire to trade. If there are no movements, then no events or reports can provide support.

General conclusion:

On Monday, there will be few important macroeconomic and fundamental events. Novice traders should pay attention to the US ISM index, but before that, we expect the same low-volatility flat for the pound, and weak downward movement for the euro. There will be much more news and reports for the rest of the week, so we don't expect interesting movements on Monday.

Basic rules of a trading system:

1) Signal strength is determined by the time taken for its formation (either a bounce or level breach). A shorter formation time indicates a stronger signal.

2) If two or more trades around a certain level are initiated based on false signals, subsequent signals from that level should be disregarded.

3) In a flat market, any currency pair can produce multiple false signals or none at all. In any case, the flat trend is not the best condition for trading.

4) Trading activities are confined between the onset of the European session and mid-way through the U.S. session, after which all open trades should be manually closed.

5) On the 30-minute timeframe, trades based on MACD signals are only advisable amidst substantial volatility and an established trend, confirmed either by a trendline or trend channel.

6) If two levels lie closely together (ranging from 5 to 15 pips apart), they should be considered as a support or resistance zone.

How to read charts:

Support and Resistance price levels can serve as targets when buying or selling. You can place Take Profit levels near them.

Red lines represent channels or trend lines, depicting the current market trend and indicating the preferable trading direction.

The MACD(14,22,3) indicator, encompassing both the histogram and signal line, acts as an auxiliary tool and can also be used as a signal source.

Significant speeches and reports (always noted in the news calendar) can profoundly influence the price dynamics. Hence, trading during their release calls for heightened caution. It may be reasonable to exit the market to prevent abrupt price reversals against the prevailing trend.

Beginners should always remember that not every trade will yield profit. Establishing a clear strategy coupled with sound money management is the cornerstone of sustained trading success.