EUR/USD 5M
The EUR/USD pair began a new round of upward movement within the same 1.1234-1.1360 horizontal channel on Wednesday. Thus, during the course of the environment, it moved to the upper region of this channel again. However, what will happen this time? Another rebound from the upper border or surpassing and forming a new upward trend? So far, we can only draw one conclusion: the pair continues to trade in a flat. Thus, trading on almost any timeframe is very difficult. The 5-minute chart clearly shows that the intraday movement was trending, but the overall volatility was about 70 points. Not much and not enough. Basically, in recent weeks, the pair has shown a fairly good movement, but still inside the horizontal channel. A more or less important ADP report on changes in the number of workers in the private sector was published in the US yesterday. But despite the fact that the actual value exceeded the forecast almost twice, the US dollar did not receive any support from the markets (figure "2" in the chart). The number "1" marks the time when the index of business activity in the service sector of the European Union was published, which had even less chance of being a proven market. Accordingly, none of the planned reports had any effect on the pair's movement. All that remains is to deal with trading signals. The first of them - to buy - was formed when the pair crossed the Senkou Span B line. Subsequently, the upward movement continued, and the price also crossed the critical line. A sell signal was never formed during the day, so the long position should have been manually closed in the late afternoon. By this time, the price was able to go up 28 points. Also, traders could have had Stop Loss triggered at breakeven for a single deal, since the price dropped back to the Senkou Span B line, but in this case, new longs should have been opened by rebounding from this line (the margin of error is only 1 point).
We recommend you to familiarize yourself:
Overview of the EUR/USD pair. January 6. The market awaits Nonfarms on Friday. The euro expects a weak December value.
Overview of the GBP/USD pair. January 6. Boris Johnson risks leaving his post before the end of this year.
Forecast and trading signals for GBP/USD for January 6. Detailed analysis of the movement of the pair and trade deals.
EUR/USD 1H
On the hourly timeframe, the pair dropped below the rising channel the day before yesterday, so it was immediately cancelled. But the pair continues to remain inside the horizontal channel, limited by the levels of 1.1234 and 1.1360. At this time, the price is not far from the upper limit of it, but even overcoming it does not guarantee that the euro will continue to rise. The movement is now as horizontal as possible, but with a slight upward slope. There is no clear trend or trend. We allocate the following levels for trading on Thursday - 1.1192, 1.1234, 1.1360, 1.1422, as well as the Senkou Span B (1.1315) and Kijun-sen (1.1328) lines. The lines of the Ichimoku indicator may change their position during the day, which should be taken into account when searching for trading signals. Signals can be "rebounds" and "breakthroughs" of these levels and lines. Do not forget about placing a Stop Loss order at breakeven if the price moves 15 points in the right direction. This will protect you against possible losses if the signal turns out to be false. You should also take into account the fact that flat is very likely now again, so the lines of the Ichimoku indicator are weak. No important report in the European Union on Thursday. Only an absolutely secondary report on applications for unemployment benefits will be released in the US, as well as a more or less important index of business activity in the ISM services sector. It is the only one who can provoke a reaction from traders.
Explanations for 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.
Kijun-sen and Senkou Span B lines are lines of the Ichimoku indicator transferred to the hourly timeframe from the 4-hour one.
Support and resistance areas are areas from which the price has repeatedly rebounded off.
Yellow lines are trend lines, trend channels and any other technical patterns.
Indicator 1 on the COT charts is the size of the net position of each category of traders.
Indicator 2 on the COT charts is the size of the net position for the non-commercial group.