Analysis of previous deals:
30M chart of the EUR/USD pair
The EUR/USD pair stood in one place all day on Monday. The volatility of the trading day was about 30 points. What else needs to be said about how the EUR/USD pair moved during the day? On the hourly and 30-minute timeframes, we regularly note that the pair is moving very weakly and there is no way to form a trend line or channel. There seems to be a downward trend, but at the same time there is no practical sense from this trend, since it is not recommended to consider the signals of the MACD indicator without a trend line or channel. Separately, it should be said about volatility, which rarely exceeds 50-60 points per day recently. This value is average for the euro currency, that is, it is quite possible to work with such volatility, but in recent days we do not often see even such volatility. European Central Bank President Christine Lagarde made two speeches on Monday, and the EU Services PMI was published. However, as you might guess, traders did not react to these events. Yesterday was Independence Day in the US and it looks like the markets continued to celebrate throughout Monday.
5M chart of the EUR/USD pair
No trading signals generated on the 5-minute timeframe during the last trading day. The pair only formally reached and bounced off the level of 1.1851 in the evening, but it never managed to hit this level during the European trading session. Also, the price was unable to reach the level of 1.1884, which is the closest to the pair's current location. Thus, the price could not hit even the two nearest levels today, therefore, not a single trading signal was generated. Perhaps this is even for the best, since with the volatility of 30 points it would hardly have been possible to gain a lot, but it was quite possible to get losses in an almost flat movement.
Trading tips for Tuesday:
The downward trend remains on the 30-minute timeframe, but rather weak and uncertain. At this time, there is still no trend line or channel, so it is not recommended to use the MACD indicator to track signals until such signals are formed. On a 5-minute timeframe, it is recommended to trade from the levels 1.1806, 1.1837, 1.1851, 1.1884 and 1.1912. 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 Tuesday, the European Union is to publish its May retail sales and July business sentiment reports. We believe that this data will not cause any reaction among traders. The only report of the day that can do this is the US ISM Services PMI. However, it should be very different from the 63.9 forecast for the markets to find a basis for working out this report.
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.
