There are few macroeconomic releases scheduled for Thursday. Once all the secondary ones are excluded, virtually nothing remains. Under the current circumstances, the market is unlikely to pay much attention to the Eurozone Producer Price Index or US initial jobless claims. Yesterday, the United States released two fairly important reports, ADP and ISM, while the Eurozone published a key inflation report. Despite these releases and the results of the US congressional elections, the market did not exhibit high volatility. Today, traders' attention will be focused on the Bank of England's policy meeting.

Review of Fundamental Events

Among Thursday's fundamental events, the Bank of England's policy meeting stands out. The British central bank will be the last of the three major central banks to implement its first key interest rate increase, making this a significant event. Since the British pound, unlike the euro, has been trading in a technically consistent manner, further appreciation can be expected. There is little reason to focus on Christine Lagarde's speech, as the market has shown no reaction to the ECB's monetary policy tightening, while the euro remains near its lows and has been unable to stage even a corrective rebound.

The geopolitical backdrop remains unfavorable. The United States and Iran are not currently holding official negotiations, while Donald Trump still appears uncertain about how to proceed with Iran following his party's crushing defeat in the elections. Yesterday, Democrats announced that they would demand an end to the war in the Middle East. Trump responded with the following statement: "The war will end when I want it to." Therefore, it is still too early to celebrate the end of the military conflict. However, oil prices fell sharply yesterday, which is already a positive development for the global economy.

General Conclusions

Market volatility could be relatively high on the penultimate trading day of the week, as the Bank of England's policy meeting is scheduled for today. The euro remains within a sideways channel, while the British pound continues to trade within an uptrend. The euro can be traded from the 1.1267–1.1275 level, while the pound can be traded from the 1.3456–1.3476 level.

Main Rules of the Trading System

1. Signal strength is determined by the time required for the signal to form (a rebound from or a breakout through a level). The less time required, the stronger the signal.
2. If two or more trades are opened near a particular level based on false signals, all subsequent signals from that level should be ignored.
3. In a sideways market, any currency pair may generate numerous false signals or none at all. Technical levels may be ignored.
4. On the hourly timeframe, it is advisable to trade MACD signals only when market volatility is sufficient and a clear trend is present, confirmed by a trendline or trend channel.
5. If two levels are located too close to each other (5–20 points apart), they should be treated as a single support or resistance zone.
6. Once the price has moved 15 points in the favorable direction, the Stop Loss should be moved to breakeven.

What the Charts Show

Support and resistance price levels (zones) are levels that serve as targets when opening buy or sell positions, or as sources of trading signals.

Red lines indicate channels or trendlines that show the current trend and the preferred trading direction.

The MACD indicator (14,22,3), consisting of a histogram and a signal line, is an auxiliary indicator that can also be used to generate trading signals.

Important speeches and reports (listed in the economic calendar) can have a significant impact on currency pair movements. Therefore, trading during their release should be approached with extreme caution, or positions should be closed to avoid a sharp price reversal against the preceding movement.

Beginner forex traders should remember that not every trade can be profitable. Developing a clear trading strategy and applying sound money management are essential for long-term success in trading.