Analysis of previous deals:
30M chart of the EUR/USD pair
The EUR/USD pair finally moved the way we would like it to be every day. The movements were strong. The volatility of the day was 67 points, which is quite a decent result. So the moves were good... but only when looking at the 5 minute timeframe. However, everything is still very gloomy on the 30 minute timeframe. The sideways movement is clearly visible, and this despite the fact that the upward trend line is still relevant, which should push the pair up. But no, the pair is in a very limited price range for the fifth consecutive day, very narrow. Therefore, this movement is called a flat. And even today's movements did not manage to change anything. The only thing that needs to be noted is that the price has worked out the trend line. However, when the market is flat, usually all important levels and lines are no longer of special importance. Thus, formally, one should expect the price to rebound from the trend line and resume the growth of the pair's quotes, but in fact this may not happen. We also draw your attention to the fact that today almost all macroeconomic statistics have been worked out by the markets, which happens very rarely in recent months. Traders worked out the EU service business index, the US ADP report and the US service business ISM index. It was the latter that provoked a strong downward movement in the afternoon.
5M chart of the EUR/USD pair
Six trading signals were formed on a 5-minute timeframe on Wednesday, and most of them could bring profit to novice traders. The main thing is that they should have been properly worked out. Let's start to figure it out. The first signal was perfect in terms of accuracy - a rebound from the level of 1.1880, followed by a downward movement of 30 points and being able to reach the nearest level of 1.1851. Thus, short positions in any case should have brought profit, no matter how the deal was closed: by Take Profit or near the level of 1.1851. A minimum of 20 points of profit. This was followed by a buy signal when the price has settled above the level of 1.1851, which should also be worked out with a long position. The ADP report was published at the beginning of the US session, which provided support for the bull traders, however, to be on the safe side, it was possible to set Stop Loss to breakeven here. As a result, the price continued to move up, went beyond the level of 1.1880, and only after the last two reports in the United States were published did it sharply turn down and began a powerful fall. By that time, a long position should have already been closed, since the price reached the closest level, passed a total of 40 points in the right direction (which would be enough even for a large Take Profit). Therefore, in any case, a profit was made on a long position. Further sell signals, although they also turned out to be profitable, should not have been worked out, since they were formed immediately after important reports were published. That is, it was very difficult to enter the market in time.
Trading tips for Thursday:
The EUR/USD pair continues to remain in an upward trend on the 30-minute timeframe. However, it is very weak, as is the trendline, which has an extremely weak slope. Therefore, it is hardly worth expecting that the price will often fall to it or, on the contrary, show a strong upward movement every day. In general, the EUR/USD pair is still facing low volatility and the absence of trend movement, which greatly complicates the process of trading on the higher timeframe. Thus, formally, we can now consider buy signals from the MACD indicator, but this should be done with the utmost care. Unfortunately, this indicator rarely generates the required signals. On the 5-minute timeframe, it is recommended to trade from the levels 1.1802, 1.1831, 1.1851, 1.1880, 1.1897. 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. On Thursday, the European Union will not publish a single important report, and in the US - only a completely secondary report on applications for unemployment benefits. Macroeconomic background will be extremely weak 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.
