Analysis of previous deals:
30M chart of the EUR/USD pair
The EUR/USD pair tried with all its might to continue its upward movement within the current upward trend on Monday. However, low volatility (around 40 points) does not make it possible for us to call today's trading an "upward movement". There was one buy signal that was generated from the MACD indicator. We would like to remind you that we advised you to only consider buy signals from this indicator in recent weeks, as the trend is upward. This signal was contradictory, as it formed right below the level of 1.2150. That is, there was a high probability of a rebound, as at the very beginning of the day. However, in any case, the signal turned out to be weak, Take Profit did not work, and the price did not reach the nearest level of 1.2174. Therefore, if novice traders had filtered out this signal, they would have received neither profit nor loss. If a long position was opened, it would have closed by Stop Loss at breakeven, since the pair went up by more than 20 points in total.
5M chart of the EUR/USD pair
Now let's take a look at the 5 minute timeframe. Here the picture, as usual, is much more interesting and complicated. As many as 6 signals were formed on Monday, but most of them should, of course, be ignored, since they all formed around the same level of 1.2150, and the nearest level was never reached. Also, with a daily volatility of 43 points, Take Profit could not be triggered. Nevertheless, let's try to understand these signals. The first was frankly false, as the price bounced off the level of 1.2150, but it almost immediately turned back up and continued to move upward within the day. Therefore, the loss was around 9 points. The second signal - to buy - a breakthrough of 1.2150 - also turned out to be false, but the price still managed to go up by another 15 points, which was enough to set Stop Loss to breakeven. Therefore, there should be no losses on this transaction. All subsequent signals should be ignored, since there have already been two signals from the same level that turned out to be false. Consequently, beginners could have lost around 9 points on Monday. A bit, but still unpleasant. No macroeconomic reports released on Monday. The market had nothing to react to. In our fundamental articles, we analyze why the euro has risen in price in the last 1.5 months and a year. We recommend that you read these reviews as well.
Trading tips for Tuesday:
Novice traders on the 30-minute timeframe currently have an upward trend, so it is recommended to consider long positions. To do this, the MACD indicator needs to be discharged to the zero level to the downside, although at this time it is already quite close. The main thing is where it will be located tomorrow morning when the European trading session opens. On the 5-minute timeframe, it is recommended to trade from the levels 1.2123, 1.2126, 1.2150, 1.2169 and 1.2174. Take Profit, as before, is set at a distance of 30-40 points on a 30-minute timeframe. Stop Loss - to breakeven when the price passes in the right direction by 15-20 points. The target at the 5M TF is the nearest level if it is not too close or too far away. If located - then you should act according to the situation. No major events scheduled in the US on Tuesday. In the European Union, the GDP report for the first quarter in the second estimate will be released, and in the evening, European Central Bank President Christine Lagarde will speak. We recommend that you do not trade or trade with extreme caution at this time. Although we do not expect the markets to react violently to these events.
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.