Analysis of previous deals:
30M chart of the EUR/USD pair
The EUR/USD pair moved exclusively upward on Monday, that is, in the opposite direction to Friday's movement. Thus, everything turned out to be quite logical, since the pair's quotes, as it turns out, have corrected after Friday's decline. We have not corrected much and, most likely, another round of the downward movement will follow. Please remember that the pair is still facing an upward trend due to the trendline that has been supporting the pair for a long time now. And so, only buy signals from the MACD indicator should have been considered during the day. None of them were formed on Monday. To be more precise, there wasn't any strong signal that was suitable for us. Therefore, you should not have opened any trades on the 30-minute timeframe on this day.
5M chart of the EUR/USD pair
Now let's take a look at the 5 minute timeframe. Here, as usual, much more signals were generated, so once again all the main trading happened here. The pair surpassed the 1.2023 level at the very beginning of the European session, which served as a buy signal. The most interesting thing is that this signal was nearly the only one that should have been processed. But first things first. After forming a buy signal, the price went up by around 17 points and hit the 1.2056 level. Two sell signals were formed near this level, however, at the time of their formation, neither Take Profit nor Stop Loss, which should have been set at breakeven, had been triggered on a long position. Of course, novice traders could also manually close longs around the 1.2056 level, which would bring them 12 points of profit. After rebounding from the 1.2056 level, you should have been opened a short position, which would have closed at a loss, since the price could not surpass the 1.2044 level. And going over 1.2056 formed another false buy signal. And so the price rebounded from the 1.2056 level from below (the third and fourth circles), long positions should not have been closed. Simply because a sell signal formed very close to the 1.2044 level, and there was a high probability that the quote would not surpass this level. This is a rather difficult moment for novice traders. If a long position was not closed at the very first signal near the 1.2056 level, then it would eventually be closed at Take Profit with a profit of 30 points. All other signals, it turns out, would be ignored.
How to trade on Tuesday:
The price may try to resume the downward movement on Tuesday, as it has corrected enough after Friday's fall up. However, the upward trend persists on the 30-minute timeframe, therefore, you are advised to consider buy signals from the MACD indicator there. For this, the indicator needs to be discharged to the zero level. Also, beginners can trade from levels 1.2023, 1.2044, 1.2056, 1.2076 and 1.2092 on the 5-minute timeframe for a rebound or breakthrough in both directions. 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 15-20 points. Recall that it is best to trade using the most accurate and clear signals, and that you should ignore inaccurate ones. The European Union and the United States will not publish any important reports on Tuesday, so beginners can only trade based on technique.
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.
