Analysis of Macroeconomic Reports:

A few macroeconomic events are scheduled for Monday. The key highlight will be the UK Q3 GDP report (third estimate). However, the market reaction to this report is not expected to be strong. The euro and the pound will likely retrace Friday's irrational gains. Given the forecasts, it will be challenging for the British pound to receive significant support from this report. No noteworthy reports are planned for the day in Germany, the EU, and the US.

Analysis of Fundamental Events:

There are no notable fundamental events to discuss for Monday. However, the market doesn't require additional commentary or speeches from central bank representatives regarding monetary policy. All three major central bank meetings have already taken place, providing market participants with comprehensive information on the state of the economies and the future actions of central banks. We maintain that these meetings conveyed a single clear message to traders: the US dollar will continue strengthening.

General Conclusions:

The downtrend may resume on the first trading day of the week. However, trading decisions on Monday should primarily rely on technical signals. It's important to remember that the downward trends for both currency pairs remain intact.

Key Rules for the Trading System:

1. Signal strength is determined by the time it takes for a signal to form (bounce or breakout of a level). The shorter the time, the stronger the signal.
2. If two or more false signals are generated near a level, subsequent signals from that level should be ignored.
3. In a flat market, any pair may produce numerous false signals or none at all. In such cases, it's better to stop trading at the first signs of consolidation.
4. Trades should be opened during the European session through the middle of the American session. All trades should be manually closed thereafter.
5. On the hourly timeframe, trades based on MACD signals should only be executed during periods of strong volatility and trends confirmed by trendlines or trend channels.
6. If two levels are very close (5–20 pips apart), they should be treated as a support or resistance zone.
7. After a 15–20 pip movement in the correct direction, set a Stop Loss at breakeven.

What's on the Charts:

Support and Resistance Levels: Targets for opening buy or sell orders. These are ideal points for setting Take Profit levels.

Red Lines: Trendlines or channels reflecting the current trend direction and indicating the preferred trading direction.

MACD Indicator (14,22,3): A histogram and signal line serving as auxiliary indicators and sources of signals.

Key News Events and Reports: Always listed in the economic calendar, these can significantly impact currency pair movements. Exercise caution or exit the market during such events to avoid sharp price reversals.

Every trade cannot be profitable. The key to long-term success in Forex trading lies in developing a clear strategy and effective money management.