empty
InstaForex Loprais Team - Official participant of the Dakar rally
InstaForex Loprais Team - Official participant of the Dakar rally
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Headquarters
Key documents
Social Responsibility
16.05.2025 06:17 AM
What to Pay Attention to on May 16? A Breakdown of Fundamental Events for Beginners
Open trading account Open demo account

Analysis of Macroeconomic Reports:

This image is no longer relevant

Few macroeconomic events are scheduled for Friday, and they are not more significant than the reports released on Thursday, which did not provoke any market reaction. In essence, the only noteworthy event is the U.S. University of Michigan Consumer Sentiment Index, which will be published in the evening. During the day, no macroeconomic backdrop—no matter how it unfolds—will be able to influence the movement of either currency pair.

Analysis of Fundamental Events:

Among the fundamental events, we can mention speeches by European Central Bank members Lane and Cipollone, but the monetary stance of the ECB is already 100% clear. We believe that the trade war and U.S. news affecting the market are the only factors that matter in allowing the market to sell the dollar. The escalation of the trade war has been put on hold, and Trump continues to announce the signing of trade agreements, but this information is only marginally helping the dollar. A renewed dollar decline may occur if Trump starts imposing new tariffs, raising existing ones, or fails to sign agreements with most countries. However, the de-escalation of the conflict, which has already begun, should at least occasionally support the U.S. currency. Nevertheless, it is important to recognize that the market's overall sentiment towards the dollar is significantly negative, making it challenging to anticipate a strong and lasting rally in the U.S. currency.

This image is no longer relevant

Conclusions:

On the week's final trading day, both currency pairs could move in any direction. The macroeconomic background is weak, making it difficult to predict when Trump might make another headline-grabbing announcement. We expect only minor movements, with trading likely to remain close to flat throughout the day. Trading should only be considered if there are strong technical signals present.

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
All Analytics
Analytical News
US Market News Digest for May 20 Despite the downgrade of the US credit rating and rising Treasury yields, retail investors remain active buyers of equities. Net purchases have surged to a record $4 billion, signaling confidence
Ekaterina Kiseleva
12:16 2025-05-20 +02:00
1690
Fundamental analysis
AUD/USD. RBA Delivers Dovish Scenario, but It's Too Early to Rush into Selling The Reserve Bank of Australia (RBA) followed the most expected scenario at its May meeting, cutting the interest rate by 25 basis points. However, AUD/USD sellers remain vulnerable
Irina Manzenko
11:44 2025-05-20 +02:00
1390
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

AUD/USD. RBA Delivers Dovish Scenario, but It's Too Early to Rush into Selling

The Reserve Bank of Australia (RBA) followed the most expected scenario at its May meeting, cutting the interest rate by 25 basis points. However, AUD/USD sellers remain vulnerable
Irina Manzenko 11:44 2025-05-20 UTC+2

Financial Markets Still Gripped by Uncertainty (Potential Decline in #USDX and Gold Prices)

Despite the 90-day truce between Beijing and Washington, market conditions remain extremely tense. Investors are uncertain about what will happen after three months—whether Donald Trump will hike tariffs again
Pati Gani 09:42 2025-05-20 UTC+2

The Market Ignores Warning Signs

When a crowd identifies a leader, it relentlessly pushes forward, clearing everything in its way. Retail investors heeded Morgan Stanley's call to "buy the dip" and began snapping up U.S
Marek Petkovich 09:11 2025-05-20 UTC+2

GBP/USD Overview – May 20: The British Pound Keeps Basking in the Sunlight

The GBP/USD currency pair traded higher on Monday, and we can "thank" the Moody's rating agency for that. As noted in the EUR/USD review, the U.S. credit rating was downgraded
Paolo Greco 07:31 2025-05-20 UTC+2

EUR/USD Overview – May 20: Fearless Moody's and a New Blow to the Dollar

The EUR/USD currency pair found a reason to resume its decline on Monday. As mentioned before, the U.S. dollar's position looks very shaky. It had risen for over a month
Paolo Greco 07:31 2025-05-20 UTC+2

What to Pay Attention to on May 20? A Breakdown of Fundamental Events for Beginners

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
Paolo Greco 06:02 2025-05-20 UTC+2

The Fed Allows Only One Rate Cut in 2025

The Federal Reserve continues to remain silent this year. While the European Central Bank has already cut interest rates three times and the Bank of England twice, the FOMC
Chin Zhao 00:40 2025-05-20 UTC+2

AUD/USD. RBA May Meeting: Preview

The Reserve Bank of Australia (RBA) will conclude its meeting on Tuesday, May 20, which may result in a softening of monetary policy parameters. The "dovish" scenario is the most
Irina Manzenko 00:40 2025-05-20 UTC+2

The Dollar Has Sold America Out Completely

Overall, the strength of the EUR/USD uptrend remains intact. The erosion of confidence in the U.S. dollar outweighs the divergence in monetary policy between the Fed and the ECB. Technical
Marek Petkovich 00:40 2025-05-20 UTC+2

AUD/USD. Analysis and Forecast

Spot prices for the AUD/USD pair remain within the familiar range held over the past month, as traders await a fresh catalyst before committing to the next directional move
Irina Yanina 18:22 2025-05-19 UTC+2

Top analytics

Relevance up to 23:00 2025-05-20 UTC--4
EUR/USD Forecast for May 20, 2025
05:08 2025-05-20
Technical analysis
Relevance up to 20:00 2025-05-20 UTC--4
Trading Recommendations and Analysis for EUR/USD on May 20: The Dollar Is Looking for Reasons to Fall
04:09 2025-05-20
Trading plan
Relevance up to 23:00 2025-05-20 UTC--4
How to Trade the EUR/USD Pair on May 20? Simple Tips and Trade Analysis for Beginners
05:40 2025-05-20
Trading plan
Relevance up to 20:00 2025-05-20 UTC--4
EUR/USD Overview – May 20: Fearless Moody's and a New Blow to the Dollar
07:31 2025-05-20
Fundamental analysis
Relevance up to 03:00 2025-05-21 UTC--4
Forecast for GBP/USD on May 20, 2025
11:22 2025-05-20
Technical analysis
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

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.