Analysis of Thursday's deals:

30M chart of the EUR/USD pair

The EUR/USD currency pair stood in one place for most of the day on Thursday. Moreover, this phenomenon was observed for the second day in a row. However, traders nevertheless got down to business and lowered the pair by 50 points in the US trading session. Basically, it's not much. The euro/dollar pair has generally shown very little volatility in recent days. The downward trend is formed, but so far the price can neither continue the fall nor start an upward correction. And if you switch to a higher TF, it becomes clear that the pair has real prospects to again be in the horizontal channel, in which it has spent three weeks out of the last four. Thus, on the one hand, the euro has a very real reason to resume the global downward trend. On the other hand, it can't do it yet. Most likely, the problem is banal - in time. When we look at the charts and see a trend, it subconsciously seems to us that the price should already move in the direction we need and reach the goal as soon as possible. In reality, the price can keep the trend, but move much more slowly, alternating periods of flat, trend and correction. There were no important macroeconomic statistics on Thursday. The report on inflation in the European Union had the opportunity to influence the pair's movement, but did not.

5M chart of the EUR/USD pair

The movements on the 5-minute timeframe during the day were not the best. The price stood still during the European trading session, while on the US one, for no reason, it collapsed. It did not "fall down" for long, so the technical picture did not change dramatically. Everything was "average" with trading signals. In the morning, not the most accurate signal to buy was formed on a rebound from the level of 1.0156. After its formation, the pair was able to go up only 15 points, but it's good that at least 15 points went up, as this allowed traders to set Stop Loss to breakeven. The next sell signal was formed when the level of 1.0156 was overcome, but the downward movement did not last long and also ended with a not very accurate rebound from the level of 1.0123. It was possible to earn 10 points on this deal. A rebound from the level of 1.0123 could also be worked out with a long position, but the price went up this time even less. By evening, the deal had to be closed manually and, most likely, nothing could be earned from it.

How to trade on Friday:

The quotes can continue to move down at any moment on the 30-minute timeframe, but so far the market is thinking more about the advisability of further selling the euro. Macroeconomic statistics this week did not help traders much, and on those days when it was available, there was no movement at all. On the 5-minute TF on Friday it is recommended to trade at the levels of 1.0000, 1.0072, 1.0123, 1.0156, 1.0221, 1.0269-1.0277. When passing 15 points in the right direction, you should set Stop Loss to breakeven. No important events or reports scheduled for Friday in the European Union and America. But, as practice shows, the pair traded in a trendy and volatile way this week just on those days when there was no macroeconomic background.

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 US 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.