Analysis of previous deals:
30M chart of the EUR/USD pair
The EUR/USD pair tried to resume the upward movement, but this happened almost in the evening, about 3-4 hours before the results of the Federal Reserve meeting were announced and prior to Fed Chairman Jerome Powell's press conference. The pair also jumped 40 points around this time, which is when European Central Bank President Christine Lagarde made a speech. Thus, two fundamental events at once could provoke this movement. Therefore, it was not recommended to open any positions at this time. However, it cannot be said that the movement itself was strong and that one deserved to work with it. As we have already said, it was only 40 points, but at the same time it still stands out against the background of the movements from the last two days, which were even weaker. The upward trend is still preserved on the 30-minute timeframe, and there was only one buy signal from the MACD indicator today . Unfortunately (or fortunately), it was formed well below the zero level, so it should not have been worked out. Thus, no signals were generated on the current timeframe.
5M chart of the EUR/USD pair
Now let's take a look at the 5 minute timeframe. The situation here is surprisingly much better than it was in the past few days. Take note that many false signals were generated on Monday and Tuesday and novice traders could hardly manage to balance on the verge of receiving losses. But today three signals were generated at once, two of which had to be worked out and both turned out to be quite strong and, at least, accurate. Unfortunately, the weakest volatility did not allow you to earn much, but any profit is good in the current environment. Both signals formed around the 1.2057 level, and rebounds from this level were ideal in terms of accuracy, as you can see for yourself by looking at the chart. After the first signal, the price went up about 15 points, which was enough to set Stop Loss to breakeven, and it was on this order that the deal was closed. The next signal allowed the pair to go up 35 points and reach the nearest level of 1.2092, which brought 25 to 30 points of profit for novice players. The next signal, which formed near the 1.2092 level, firstly, was not accurate, and secondly, it was formed immediately after Lagarde's speech, it should not have been worked out. You could have missed the second buy signal, but it was too accurate. All subsequent signals could be safely ignored, as there is too little time left before the results of the Fed meeting.
How to trade on Thursday:
On Thursday, we recommend trading on the 30-minute timeframe, still buying, as the upward trend continues. However, much will depend on how the day ends and what the market's reaction to the Fed meeting will be. It is also unknown where the MACD indicator will end up at the end of the day. In general, in any case, you need to wait for tomorrow morning and look at the technical picture. Tomorrow, novice traders can trade from levels 1.2023, 1.2092 and 1.2112 for a rebound or breakthrough in both directions. 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. There are more levels on the 5-minute timeframe, each of them can also be used to receive signals. We remind you that you should only use the most accurate and clear signals. No major publications scheduled for April 29 in the European Union, while the US will publish a report on GDP for the first quarter, which is of great importance for the American economy and for traders.
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.
