Analysis of Thursday trades:
EUR/USD on 30M chart
On Thursday, the EUR/USD trajectory was quite favorable for novice traders although it was not possible to earn much since the pair's volatility was very low. If the pair passes the distance of just above 50 pips during the day, going from its low to a high, then as a rule, it is quite difficult to catch this movement and close the trade by Take Profit. On Thursday, only one buy signal was generated by the MACD indicator. It emerged very close to the zero level, so it could and should have been used. In this case, the trade should have been opened at 1.2194, while the daily high was located at 1.2226. This means that the euro/dollar pair has more or less completed the distance of 30 pips after the signal had been generated. So, the long position was closed by Take Profit. Today was not the most successful day in terms of trading, so a profit of 30 pips was an excellent result. In the course of the day, a report on jobless claims in the US was published and a speech by Christine Lagarde took place. Both of the events did not have any significant influence on the pair's trajectory.
EUR/USD on 5M chart
Now let's take a look at the 5-minute time frame. Strange as it may seem, but no signals have been formed on the 5-minute time frame during today. In the European trading session, the pair approached the level of 1.2174 but failed to test it. In the New York session, the pair did not approach any important levels at all. Thus, beginners should not have opened any trades on this time frame today. This can also happen. Since the price movement was quite difficult today, there was a high probability of losses. Therefore, it was even better that no trading signals were generated and no trades were opened. Consequently, the total daily profit was 30 pips which were gained from just one signal.
Trading tips for Friday:
Beginners can still observe a clear uptrend on the 30-minute time frame. So, it is recommended that you continue placing buy orders. The MACD indicator is now quite high, so it needs to be discharged to the zero level before it can generate new buy signals. For this, we need to wait for a round of downward correction. It is recommended to trade from the levels of 1.2169, 1.2174, 1.2234, and 1.2242 on the 5-minute time frame. As always, place Take Profit at the distance of 30-40 pips. Stop Loss should be set to a breakeven point when the price passes the distance of 15-20 pips in the right direction. On the 5-minute time frame, the nearest level can serve as a target unless it is too close or too far away. You also need to look at the volatility of the pair. If it is high, then you should act according to the situation. On Friday, we advise novice traders to pay attention to reports on business activity in the services and manufacturing sectors in the EU. A composite index will also be published, but it is even less significant than the two reports mentioned above. We do not expect any serious market reaction to these reports, but anything can happen. So, you should keep an eye on them as well. The same is true for Christine Lagarde's speech. Her previous statements provided absolutely no new information to the markets. So, most likely it will be the same this time. Yet, such an event should not be ignored. The United States will release the data on business activity in the services and manufacturing sectors. It is also recommended to take these reports into account. However, you should not expect a strong market reaction.
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 channels or trendlines 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 you can always find 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 exit 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 are the key to success in trading over a long period of time.