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Analysis of previous deals:
30M chart of the EUR/USD pair
The EUR/USD pair continued to trade very calmly on Monday. In principle, this movement is called a flat. Moreover, it does not even make sense to try to work out this type of flat, since volatility was 27 points. We would like to remind you that the minimum Take Profit for any trade is 30 points. Thus, even theoretically, it was practically impossible to make money today. The weakness of the movement is especially clearly visible on the 30-minute timeframe. In addition, the price settled below the upward trend line on Friday, so now it is no longer relevant, although the upward trend is formally still preserved. However, along with this, traders did not manage to overcome the level of 1.1805. Thus, the overall upward movement is very weak. No important report published either in the European Union or in the United States either. Thus, we have a completely "empty" Monday.
5M chart of the EUR/USD pair
The picture of the pair's movements on the 5-minute timeframe was as simple as possible. Novice traders can clearly see how the pair traded all day in the chart above. When it takes almost an entire trading session to form one trading signal, the pair clearly has problems. However, despite the flat, three trading signals were generated. Everything is for short positions, and everything is near the 1.1802 level. Thus, novice traders could still open one short position today. As a result, a short could be closed either manually at minimum profit, or by Stop Loss, which should have been set to breakeven, since the price went down as a result of 15 points. Thus, in any case, today there were no losses, which is very good.
Trading tips for Tuesday:
The EUR/USD pair continues to be in an upward trend on the 30-minute timeframe, but the trend line is broken, and the upward movement itself is very weak. Since there is no actual trend line now, the signals from the MACD indicator should be ignored until a new trend line or channel is formed. Overcoming the level of 1.1805 can be used as a signal, but a similar signal will be formed earlier and at the lowest TF. In the 5-minute timeframe, it is recommended to trade from the levels of 1.1756, 1.1779, 1.1802, 1.1831, 1.1851. 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 located - then you should act according to the situation. On Tuesday, the European Union will publish a rather important report on inflation for August, which may move the pair's quotes from their place. Thus, in the morning one can expect a stronger movement than on Monday. There will be no important macroeconomic publications in the second half of the day, so there is not much to count on.
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.
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