Analysis of previous deals:
30M chart of the EUR/USD pair
The EUR/USD pair was trading on Tuesday... it was not trading at all. Volatility for the day was 30 points. Therefore, it was extremely difficult to extract even a few points of profit from such movements. In principle, everything is clear with the 30-minute timeframe, since we did not recommend looking for signals from the MACD indicator on it due to the fact that the pair has been trading in the horizontal channel of 1.2110-1.2260 for several weeks. That is, the channel is not just horizontal, not just with absolutely vague boundaries, but also quite wide. In general, it is more expensive to look for signals on a 30-minute timeframe in such conditions. We received one more or less significant report on the eurozone GDP for the first quarter in the third estimate. Unexpectedly, this report was stronger than the previous two estimates, as it showed less contraction in the first quarter than it was before. However, the euro did not receive any support on the basis of these data.
5M chart of the EUR/USD pair
The technical picture is even more eloquent on the 5-minute timeframe. The pair spent the whole day near the level of 1.2181, breaking it ten times in total. Formally, these were all signals, but at the very beginning of the European trading session it already became clear that the pair was in a flat. Even the very first signal is completely incomprehensible to interpret, because the pair did not rebound from the 1.2181 level, and did not surpass it. After that, when the quotes had already returned to this level, it was unclear in which direction the pair was moving. Therefore, novice traders had to ignore all of these signals today. At most, beginners could enter the market on the second signal - a rebound from the level of 1.2181, get a loss of about 8-10 points and no longer open deals, since there were already two false signals around the level of 1.2181. Accordingly, all subsequent ones should not be considered at all.
Trading tips for Wednesday:
The downward trend is canceled on the 30-minute timeframe, so the pair is out of any trend. Formally, we can say that an upward trend has now begun, but in fact the pair continues to remain between the levels of 1.2110 and 1.2260. Not the narrowest, and not quite a horizontal channel, but such is the reality. Thus, from the current position, the pair can move in any direction with the same probability. Therefore, we do not recommend tracking any signals from the MACD indicator on the 30-minute timeframe. It is recommended to trade from the levels 1.2159, 1.2181 and 1.2215 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 the 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. No important events and reports scheduled for Wednesday in the European Union and America. And so the pair may continue to be in a completely incomprehensible or completely flat movement. At the slightest suspicion of a flat tomorrow, we recommend not to enter the market.
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.
