Analysis of previous deals:
30M chart of the EUR/USD pair
The EUR/USD pair bounced off the 1.2112 level on Monday, moreover, twice (which will be seen on the lower timeframe) and in an accurate manner, therefore, a rather strong sell signal was formed, which should have been worked out. In general, the upward trend for the EUR/USD pair remains, as evidenced by the rising trend line. The upward movement has been going on for more than three weeks. This way, novice traders can see an example of a really strong trend (for the short term). Unfortunately, at this time the MACD indicator practically does not generate signals that could be worked out. Recall that only buy signals should be considered. Today, for example, such a signal was generated, but the indicator was too low, much lower than the zero level, so you should not have opened long positions on this signal. The point of working with this indicator is to follow the trend after each correction. However, if the indicator goes too low, there is a high probability that the correction has been delayed or that the indicator will simply stop correlating with the price and begin to discharge. We advise you to only pay attention to the clearest signals.
5M chart of the EUR/USD pair
Now let's take a look at the 5 minute timeframe. Here, four signals were generated during the day, the first of which exactly repeats the signal from the 30-minute timeframe. But on the 5-minute timeframe, it naturally formed earlier. Thus, novice traders could open short positions here. Since the price reached the nearest level at 1.2082, and the EUR/USD pair fell by about 41 points, novice traders could close this deal both manually and by Take Profit. In any case, they would have made a profit of 30 points. The second signal to sell should not have been worked out, because when it was formed at the very beginning of the US session, a report on orders for durable goods was published in America. Not exactly the most important report, however, the pair began to move from side to side after it was published, which is clearly visible on the 5-minute timeframe. In the last couple of hours, two more signals were formed for surpassing the 1.2082 level, however, we do not recommend trading with them, since the trading day is ending, and just recently a report was published, afterwards there was both an increase in the fall and a sharp upward reversal.
How to trade on Tuesday:
On Tuesday, we recommend trading on the 30-minute timeframe, still buying, as the upward trend continues. The upward trend line remains relevant. The MACD indicator was sufficiently discharged on Monday, but now it is too low to generate buy signals. Novice traders can trade from levels 1.2082, 1.2112 and 1.2174 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. Remember to use only the most accurate and clear ones. No important publications scheduled for April 27 in the European Union, and only a report on the consumer confidence indicator will be released in the United States. From our point of view, it is unlikely that there will be a reaction to it, plus, it will be released in the late afternoon. However, do take note of the fact that such a report will be published.
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.