empty
19.03.2025 07:44 AM
What to Pay Attention to on March 19? A Breakdown of Fundamental Events for Beginners

Analysis of Macroeconomic Reports:

This image is no longer relevant

There are few macroeconomic events scheduled for Wednesday, which suggests that volatility for both currency pairs may remain low until the evening. The dollar continues to show signs of weakness, but what can we expect from it moving forward? The Eurozone will release its second estimate of February inflation; however, these revisions rarely differ from the initial readings, so no significant market reaction is anticipated. No other macroeconomic reports are planned for the day.

Analysis of Fundamental Events:

The most important event on Wednesday will be the Federal Reserve meeting. While the decision on the key interest rate is predictable, Jerome Powell's press conference and the "dot plot" chart could provide valuable insights. Currently, monetary policy is not the primary focus for traders, but this event may still provoke a notable market reaction.

According to the previous "dot plot" forecast, two rate cuts were expected in 2025. If today's chart indicates more or fewer expected cuts, this could influence trading strategies regarding the dollar. Powell's rhetoric will also be critical—if he adopts a more dovish tone, it may further weaken the dollar. However, by Thursday, we expect the market to revert to its main trend of selling the dollar, largely due to Donald Trump's policies.

General Conclusions:

This image is no longer relevant

Throughout Wednesday, both currency pairs could fluctuate in any direction, as the market is currently driven by emotions, with Donald Trump being the primary influence. A brief market "storm" may occur in the evening, temporarily strengthening the dollar. Nevertheless, monetary policy—even from the Fed—is not the key factor shaping market prices at this moment. The market is bracing for an all-out trade war between the U.S. and the EU, which continues to exert downward pressure on the dollar.

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
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
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

What to Pay Attention to on March 27? A Breakdown of Fundamental Events for Beginners

There are very few macroeconomic events scheduled for Thursday, and even fewer are deemed important. The only report that deserves attention is the third estimate of U.S

Paolo Greco 05:42 2025-03-27 UTC+2

GBP/USD Pair Overview – March 27: The British Pound Stalls

On Wednesday, the GBP/USD currency pair openly traded in a flat range. Volatility remains low, with no trending movements even within the day. In other words, the market is simply

Paolo Greco 03:06 2025-03-27 UTC+2

EUR/USD Pair Overview – March 27: Donald Trump Steps Back

On Wednesday, the EUR/USD currency pair continued trading with minimal volatility and a slight downward bias. Trading volumes were absent, which is unsurprising—there has been very little news this week

Paolo Greco 03:06 2025-03-27 UTC+2

GBP/USD. A Rough Patch for the Pound

The UK inflation report failed to support the pound—all components of the release came in below expectations. On the one hand, this report is unlikely to influence the outcome

Irina Manzenko 23:41 2025-03-26 UTC+2

The Dollar Will Loosen Its Grip

The euro is retreating cautiously, worried about a potential trade war between the European Union and the United States, while the dollar is on track for its worst month

Marek Petkovich 23:41 2025-03-26 UTC+2

Donald Trump sows confusion again with tariff remarks

United States President Donald Trump once again stirred confusion on Tuesday by announcing plans to introduce a series of exemptions to his sweeping tariff proposal. The announcement served

Jakub Novak 11:36 2025-03-26 UTC+2

XAU/USD. Analysis and Forecast

Gold continues to show a positive tone today, but conviction behind the upward movement remains weak. Market uncertainty, driven by the tariffs announced by Donald Trump—set to take effect

Irina Yanina 10:54 2025-03-26 UTC+2

USD/JPY. Analysis and Forecast

The Japanese yen remains under pressure today due to weak domestic economic data. In February, Japan's leading inflation indicator in the services sector rose by 3.0% year-over-year, slightly below

Irina Yanina 10:42 2025-03-26 UTC+2

Looks Like It's Time to Focus on the Euro and Yen (EUR/USD May Fall, USD/JPY May Rise)

Since mid-month, financial markets have been trying to recover while frantically analyzing all possible developments surrounding the trade war the U.S. launched against its largest trading partners. Investor sentiment continues

Pati Gani 08:52 2025-03-26 UTC+2

Markets Won't Rush Headfirst into the Fire

Donald Trump has dealt such a heavy blow to globalization that conditions and outlooks for the future have changed—now divided along territorial lines. While European banks believe the S&P 500's

Marek Petkovich 07:00 2025-03-26 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.