How to trade EUR/USD on December 27. Simple trading tips and analysis for beginners

EUR/USD didn't trade on Monday. What I mean is that it didn't "move sideways" or "was in a flat", it just didn't move at all. The volatility of the day was 18 points. This is not small, it is a paltry amount. There was not a single report or fundamental event during the day. Therefore, there is nothing to analyze. The price is still in the horizontal channel between 1.0587 and 1.0657, but if last week you could at least trade using a bounce from these levels, on Monday, you couldn't trade at all. A similar pattern may be observed during the entire week. The euro took an early vacation last week.

Trading opened several hours late on Monday, and the price did not even approach any of the levels during the day. That's why there were no trading signals. There was no possibility to open deals.

EUR/USD is still in the 1.0587-1.0657 horizontal channel on the 30-minute chart. Thus, in order to count on any kind of trend movement, the pair should leave this range. The direction of the movement will be determined by which limit the pair will cross. So far, it has more chances to cross the lower limit. On the 5-minute chart, it is recommended to trade at the levels of 1.0465-1.0483, 1.0536, 1.0587-1.0607, 1.0657-1.0663, 1.0697, 1.0736, 1.0787, 1.0806. As soon as the price passes 15 pips in the right direction, you should set a Stop Loss to breakeven. There are no important reports or events scheduled for Tuesday in the EU or the US, so I do not expect the flat to end.

1) The strength of the signal is determined by the time it took the signal to form (a rebound or a breakout of the level). The quicker it is formed, the stronger the signal is.

2) If two or more positions were opened near a certain level based on a false signal (which did not trigger a Take Profit or test the nearest target level), then all subsequent signals at this level should be ignored.

3) When trading flat, a pair can form multiple false signals or not form them at all. In any case, it is better to stop trading at the first sign of a flat movement.

4) Trades should be opened in the period between the start of the European session and the middle of the US trading hours when all positions must be closed manually.

5) You can trade using signals from the MACD indicator on the 30-minute time frame only amid strong volatility and a clear trend that should be confirmed by a trendline or a trend channel.

6) If two levels are located too close to each other (from 5 to 15 pips), they should be considered support and resistance levels.

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 channels or trend lines that display the current trend and show in which direction it is better to trade now.

The MACD indicator (14, 22, and 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 patterns (channels and trendlines).

Important announcements and economic reports that can be found on the economic calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommend trading as carefully as possible or exiting the market in order to avoid sharp price fluctuations.

Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management is the key to success in trading over a long period of time.