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

EUR/USD showed inexplicable movements on Thursday. So, the volatility of the day was only 60 pips. The pair failed to cross 1.0923, as well as to settle below the ascending trend line. Thus, the price remained wedged between these two lines.

At least two quite important reports were released in America. I previously mentioned that the market will only react to them if the actual values deviate from projections. Get this: GDP grew not 2.6%, but 2.9% in the fourth quarter, and durable goods orders were twice what was forecasted. And how did that help the dollar? It didn't. Quotes only fell for literally 15 minutes and then returned to the area above the trend line. Once again take note that the macro data was ignored, and the market is desperate not to buy the U.S. currency, even if there are all the necessary reasons for it.

There were only two trading signals on the 5-minute chart on Thursday. The pair bounced twice from the 1.0920-10923 area. The first time it caused a 40 pips decline, but the price failed to reach the nearest target at 1.0867. At about the same time, the US data was released, so novice traders could close the short position in advance and get a profit of about 20 pips. In the second case, the price went down about 20-30 pips before the evening, which could also be profitable. Therefore, in spite of another odd movement, beginners could finish the day with a profit of 40-50 pips, which is an excellent result with the total volatility of about 60 pips.

The pair maintains the uptrend on the 30-minute chart and a new ascending trend line has been formed. Nevertheless, if we evaluate the pair's movements during the last 2 weeks, the movement is more like a flat. Therefore, we should be ready for the corresponding movements every day. There are very few important events this week, which is an excellent environment for a flat movement to persist. On the 5-minute chart, it is recommended to trade at the levels 1.0657-1.0668, 1.0697, 1.0736, 1.0768, 1.0806, 1.0857-1.0867, 1.0920-1.0923-1.0933, 1.0966, 1.0989. As soon as the price passes 15 pips in the right direction, you should set a Stop Loss to breakeven. On Friday, we have another speech from European Central Bank President Christine Lagarde in the European Union and the data on consumer sentiment, income and expenditures of the American population will be published in the US. Well, they aren't the most important data...

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.