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Fundamental analysis

28.10.202507:04 Forex Analysis & Reviews: What to Pay Attention to on October 28? Analysis of Fundamental Events for Beginners

Review of Macroeconomic Reports:

One macroeconomic report is scheduled for Tuesday. Germany will release the consumer confidence index from GfK, which holds roughly the same value for traders as yesterday's business climate report. In recent weeks, the market has been ignoring factors related to the global fundamental backdrop and much more significant macroeconomic reports. Therefore, the consumer confidence index is unlikely to provoke any market reaction. The calendars for the UK, Eurozone, and the U.S. are empty today.

Review of Fundamental Events:

No fundamental events are scheduled for Tuesday either. This week, the European Central Bank and the Federal Reserve will hold meetings, so representatives of these central banks are unlikely to comment on the economic situation or announce monetary policy plans at this time. Consequently, we can only count on new statements from Donald Trump, but even the market is becoming quite indifferent to them. For example, on Monday, the market essentially ignored the easing of tensions between Beijing and Washington, as both sides reached a "framework agreement" and may soon extend the truce without raising trade tariffs or imposing new restrictions.

General Conclusions:

During the second trading day of the week, both currency pairs may trade extremely weakly and chaotically once again. The euro has a trading range of 1.1655-1.1666, from which both long and short positions can be considered. The British pound is hovering around the area of 1.3329-1.3331, from which trading is also possible. However, most signals are not currently leading to the execution of target levels, as market volatility remains very weak.

Basic Rules of the Trading System:

1. The strength of a signal is assessed based on the time it took to form the signal (bounce or breakout of a level). The less time it took, the stronger the signal.
2. If two or more trades based on false signals were opened around a specific level, all subsequent signals from that level should be ignored.
3. In a flat market, any pair can generate a plethora of false signals or none at all. In any case, at the first signs of a flat, it is better to stop trading.
4. Trades are opened during the time period between the start of the European session and the middle of the American session, after which all trades should be closed manually.
5. On the hourly timeframe, trading signals from the MACD indicator are preferably used only when there is good volatility and a trend confirmed by a trend line or trend channel.
6. If two levels are located too close to each other (5 to 20 pips), they should be treated as an area of support or resistance.
7. After moving 15-20 pips in the correct direction, a Stop Loss should be set to breakeven.

What's on the Charts:

• Price support and resistance levels are targets for opening buy or sell positions. Take Profit levels can be placed around them.
• Red lines indicate channels or trend lines, showing the current trend and the preferred trading direction.
• The MACD indicator (14,22,3) – histogram and signal line – is a supplementary indicator that can also be used as a source of signals.

Important speeches and reports (always found in the news calendar) can significantly affect the movement of the currency pair. Therefore, trading during their release should be done with utmost caution, or one should exit the market to avoid sudden price reversals against the preceding movement.

Beginners trading in the Forex market should remember that not every trade can be profitable. Developing a clear strategy and money management are the keys to success in trading over the long term.

*El análisis de mercado publicado aquí tiene la finalidad de incrementar su conocimiento, más no darle instrucciones para realizar una operación.

Paolo Greco,
Analytical expert of InstaSpot
© 2007-2025

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