empty
20.05.2025 06:02 AM
What to Pay Attention to on May 20? A Breakdown of Fundamental Events for Beginners

Analysis of Macroeconomic Reports:

This image is no longer relevant

There are no macroeconomic events scheduled for Tuesday, so the macroeconomic background will have no influence on price movements today. However, reports and data releases have rarely impacted currency pairs in recent months. In most cases, the market ignores any figures in favor of the dollar and gladly reacts to data that are negative for the greenback. From a technical standpoint, the euro remains in a downward correction against the three-month trend, while the pound continues to move sideways.

Analysis of Fundamental Events:

This image is no longer relevant

Among Tuesday's fundamental events, we can note speeches from several Federal Reserve representatives: Barkin, Bostic, Collins, Musalem, Kugler, Daly, and Hammack. Donnery, Cipollone, and Buch are expected to speak from the European Central Bank. Bank of England Chief Economist Huw Pill is on the calendar. However, what significance can these speeches have if the stance and direction of central banks are already completely clear?

We believe that the only factor that matters for the market is the trade war, which, although gradually de-escalating, persists. Donald Trump continues to announce the signing of trade agreements, but this information has only a modest impact on the dollar. A renewed dollar decline could occur if Trump starts introducing new tariffs, raises existing ones, or if trade deals with most countries fail to materialize. The dollar may even resume falling without any new tariffs, as market sentiment toward the U.S. president and his policies remains extremely negative.

Conclusions:

Both currency pairs can move in either direction during the second trading day of the new week. There will be no macroeconomic background, and it is impossible to predict when Trump might deliver new high-impact remarks. We anticipate that today will experience low volatility and minimal movement. The British pound may lean toward a decline within its sideways range, while the euro may continue its correction within the one-month downtrend.

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.

Paolo Greco,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Stanislav Polyanskiy
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

USD/JPY. Analysis and Forecast

On Monday, the Japanese yen is struggling to capitalize on a modest correction amid a weaker US dollar. Sunday's elections to Japan's upper house of parliament put strong pressure

Irina Yanina 19:43 2025-07-21 UTC+2

XAU/USD. Analysis and Forecast

At the start of the European session on Monday, gold showed a positive tone, but the price continues to trade within a multi-week range. The US dollar, retreating from

Irina Yanina 19:36 2025-07-21 UTC+2

Bitcoin gathering strength for leap

FOMO — the fear of missing out — has been the main driver behind the BTC/USD rally. Regardless of how much is said about the US passing crypto-friendly legislation, capital

Marek Petkovich 13:27 2025-07-21 UTC+2

NZD/USD. Analysis and Forecast

Trade-related uncertainty continues to call for caution among traders with a bullish bias. At the start of the European session, the NZD/USD pair partially recovered its intraday losses. However

Irina Yanina 12:40 2025-07-21 UTC+2

Gold Resumes Its Uptrend

Gold rose at the opening of the Asian session on Monday as traders evaluated differing views among U.S. Federal Reserve officials on how President Donald Trump's tariff policy might affect

Jakub Novak 12:03 2025-07-21 UTC+2

No Consensus on Interest Rates Within the Federal Reserve

Judging by recent comments from several Federal Reserve officials, the committee has yet to reach a consensus on interest rate policy. While some members continue to stress the need

Jakub Novak 12:01 2025-07-21 UTC+2

The Euro May Get a Chance to Rise

Traders preparing for the upcoming European Central Bank meeting this Thursday, which will focus on setting interest rates, should also pay close attention to numerous economic reports this week

Jakub Novak 11:59 2025-07-21 UTC+2

Good news already priced in?

Not long ago, Donald Trump could send Wall Street into turmoil with a single social media post. Now, he is threatening to fire the Fed chair and remove the firewall

Marek Petkovich 09:13 2025-07-21 UTC+2

What to Pay Attention to on July 21? A Breakdown of Fundamental Events for Beginners

There are no macroeconomic reports scheduled for Monday. Therefore, weak market movements can be expected. Of course, Donald Trump could unexpectedly return to the spotlight at any moment with

Paolo Greco 04:01 2025-07-21 UTC+2

EUR/USD Weekly Preview: Tariff Saga, ECB Meeting, PMI and IFO Indices

The penultimate week of July lies ahead. We will learn the outcome of the next European Central Bank meeting as well as the July figures of key macroeconomic indicators. Additionally

Irina Manzenko 00:07 2025-07-21 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.