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Analysis of previous deals:
30M chart of the EUR/USD pair
The EUR/USD pair was trading with an upward bias on Monday, although there were no macroeconomic and fundamental events that could trigger a new round of upward movement, when the pair is already near its highs for several years. There were no news or reports, but market participants still found reasons for new long positions on the European currency during the day. Since the upward trend on the 30-minute timeframe persists, it is still recommended to consider long positions. However, the MACD indicator did not generate a buy signal during the day. It simply never even turned up. Therefore, trades on this timeframe should not have been opened today. We also draw your attention to the fact that the pair has been trading between the levels of 1.2174 and 1.2242 for the fifth day, that is, in a horizontal channel. And although last week at least two days were very interesting in fundamental terms, nevertheless, the pair continues to move in the 70-point channel for a week.
5M chart of the EUR/USD pair
Now let's take a look at the 5-minute timeframe. No signal generated during the day. Generally. What is most interesting is that the pair sharply fell by 30 points, and then it just as sharply resumed its upward movement. Despite the fact that this is only 30 points, which in global terms do not affect anything, it was still very strange to see such a breakthrough in the middle of a "dull Monday". Moreover, this spurt could remove the Stop Loss' s of traders, and cause false signals, so it is very good that there weren't any signals during the day, especially since it is still impossible to explain what caused such a jump in the price. Even more interestingly, a buy signal could still be formed on this downward leap, since the pair literally fell short of reaching the level of 1.2174 by one point, a rebound from which could be interpreted as a buy signal. So, today revealed a lot for novice traders. Beginners now know that even when the calendar of macroeconomic events is empty, it does not mean that the market will stand in one place or move as smoothly and conveniently as possible for traders. You should always be prepared for such situations.
Trading tips for Tuesday:
There is still a clear upward trend on the 30-minute timeframe, so it is recommended to continue to consider long positions. The MACD indicator has now soared up again, so in order for it to form a new buy signal, you need to wait for a new round of correction and its discharge to the zero level. But there is also a high probability that the pair will remain inside the horizontal channel and move between its borders. It's been a long time since the pair has been openly flat. On the 5-minute timeframe, it is recommended to trade from the levels of 1.2150, 1.2161, 1.2174, 1.2230 and 1.2242. Take Profit, as before, is set at a distance of 30-40 points. Stop Loss to break even when the price passes in the right direction 15-20 points. The target at the 5M TF can be the nearest level, as long as it is not too close or too far away. If it is located, then you should act on the situation. There are no major events scheduled for Tuesday in the European Union, and only minor reports and speeches from Federal Reserve officials in the United States. However, we have already seen today that an empty calendar does not mean that the pair will trade calmly and in a convenient manner.
On the chart:
Support and Resistance Levels are the Levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.
Red lines are the channels or trend lines that display the current trend and show in which direction it is better to trade now.
Up/down arrows show where you should sell or buy after reaching or breaking through particular levels.
The MACD indicator (14,22,3) consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend lines (channels and trend lines).
Important announcements and economic reports that you can always find in the news calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommended trading as carefully as possible or exit the market in order to avoid a sharp price reversal.
Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time.
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