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Analysis of previous deals:
30M chart of the EUR/USD pair
The EUR/USD pair was not trading very actively again. Volatility during the day was only 41 points, which, of course, is very small. Therefore, it is still very difficult to trade and earn money in such conditions. How can you earn on a trade with a minimum Take Profit of 30 points if the pair passes only 40 points for the entire day? In addition, the pair remains openly flat. This is clearly visible on the 30-minute timeframe. At the same time, both in the context of several weeks, and in the context of today specifically. On Tuesday, the pair's quotes moved strictly sideways for most of the day, so, in accordance with our recommendations, we should ignore all signals from the MACD indicator. Despite this movement in recent weeks, and despite overcoming the upward trend line, the upward trend still persists. This is supported by the fact that the price continues to be located near its local highs near the level of 1.2266, as well as near the 3-year highs near the level of 1.2350.
5M chart of the EUR/USD pair
The picture on the 5-minute timeframe is as boring as it is on the 30-minute timeframe. There was one signal that was formed during the day - in the European trading session in the form of a rebound from the level of 1.2215. A long position should have been opened here, but, unfortunately, it closed at breakeven by Stop Loss at the beginning of the US trading session. Around the same time, another buy signal could have been generated in the form of a rebound from the same level (1.2215), but the price did not reach it for the second time, by just a point. Thus, a potentially profitable trade was closed by accident and a new signal, potentially profitable, was not formed due to a point. Bad luck. On the other hand, losses could be incurred with such low volatility and frequent price reversals. But this also did not happen. As for macroeconomic reports, there were plenty of them today. We usually mark the times of important reports with ticks in the charts, but today there is no need for this, since there wasn't any report that had caused an unambiguous reaction from the markets. Of the really important publications, we note inflation in the European Union, which accelerated to 2% y/y, and the ISM PMI in the US manufacturing sector, which rose to 61.2.
Trading tips for Wednesday:
The upward trend is still maintained on the 30-minute timeframe, so we continue to recommend considering long positions. However, the movement remains as close to flat as possible, so the MACD indicator can generate false signals. Thus, tomorrow we recommend that novice traders monitor buy signals from the MACD indicator, but if signs of a flat appear again, ignore them. It is recommended to trade from the levels 1.2159, 1.2181, 1.2215 and 1.2266 on the 5-minute timeframe. Take Profit, as before, is set at a distance of 30-40 points. Stop Loss - to breakeven when the price passes in the right direction by 15-20 points. At 5M TF, the target can be the nearest level if it is not too close or too far away. If located - then you should act according to the situation. On Wednesday, we recommend that novice traders pay attention to European Central Bank President Christine Lagarde's speech. More precisely, to be more careful during her speech, since we will find out what she will announce later on. Unless you follow her online. No more important events planned for tomorrow.
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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