FX.co ★ How to trade EUR/USD on December 22? Simple tips for beginners. The pair remains inside the horizontal channel and prepares for the holidays

Analysis of previous deals:

30M chart of the EUR/USD pair

The EUR/USD pair tried to show movement, but nothing came of it. The volatility of the day is about 40 at one point. In addition, the pair continues to remain within the horizontal channel, while the calendar of macroeconomic events remains empty. Thus, the technical picture does not change at all on the 30-minute timeframe. For 19 trading days, quotes are traded exclusively between the levels of 1.1234 and 1.1355. Obviously, there is neither a trend nor a trend line right now. Such a movement on the eve of the New Year and Christmas holidays should not be surprising, but it has been observed not only in the last few days, but for four weeks already. And even last week's European Central Bank and Federal Reserve meetings could not get the pair out of the flat. So far, there is no reason to expect its completion anytime soon.

5M chart of the EUR/USD pair

The pair's movements on the 5-minute timeframe were also absolutely expected and absolutely unpredictable. It was only expected that the pair would remain within the flat. However, two trading signals could have formed today, which could bring beginner traders several tens of points of profit. We are talking about the 1.1305 level, which formed yesterday after our review and is also the Monday high. The price could rebound twice from it on Tuesday. The first time it missed only a point, the second time by 4 points. However, this is a small error, and beginners could work out these "under-bounces" with short positions. The first trade would have closed at breakeven, since the price was able to go down only 17 points, which would have allowed the Stop Loss to be set to breakeven, and then returned to the level of 1.1305. The second time the rebound was not so obvious, so traders could already ignore the second signal, since there was no signal there. In general, even with such a stretch, it was not possible to make a profit. Unfortunately, now there is such a movement of the pair.

How to trade on Wednesday:

On the 30-minute timeframe, the EUR/USD pair continues to be in the horizontal channel of 1.1234-1.1355. Since a rebound followed from its lower border, we continue to expect an upward movement to the upper border. If the pair manages to overcome any of the boundaries, this may mean the emergence of a new trend, and such a signal can even be tried to work out. The key levels on the 5-minute timeframe for December 22 are 1.1186, 1.1227 - 1.1234, 1.1305, 1.1348-1.1355, 1.1422. 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 points. At the 5M TF, the target can be the nearest level if it is not too close or too far away. If it is, then you should act according to the situation or work according to Take Profit. The European Union will not publish an important report on Wednesday. In America, only a secondary in its essence report on GDP for the third quarter will be released. The report itself is important, but this will be its third assessment, thus, it is simply unlikely to surprise the markets with anything.

Basic rules of the trading system:

1) The signal strength is calculated by the time it took to form the signal (bounce or overcome the level). The less time it took, the stronger the signal.

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

3) In a flat, any pair can form a lot of false signals or not form them at all. But in any case, at the first signs of a flat, it is better to stop trading.

4) Trade deals are opened in the time period between the beginning of the European session and until the middle of the American one, when all deals must be closed manually.

5) On the 30-minute TF, using signals from the MACD indicator, you can trade only if there is good volatility and a trend, which is confirmed by a trend line or a trend channel.

6) If two levels are located too close to each other (from 5 to 15 points), then they should be considered as an area of support or resistance.

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.

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 speeches and reports (always contained in the news calendar) can greatly influence the movement of a currency pair. Therefore, during their exit, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement.

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.