Analytics and trading signals for beginners. How to trade the EUR/USD pair on August 25? Analysis of Monday trades. Preparation for trading on Tuesday

The EUR/USD pair continued the upward correction for most of the day on Monday, August 24, which began at the end of the last trading week. Thus, the MACD indicator has been directed upwards during the entire trading day and just a few hours ago, it reached the 0 levels and went above it. Take note that it is best to search for the necessary signals not far from this level. There was no clear rebound from the downward trend line. Therefore, it is possible that the pair is preparing to continue an upward movement. It is also impossible to say that the pair successfully overcame the trend line. However, the MACD indicator formed a new sell signal (circled in red), so traders had every right to open new short positions. However, we will not be surprised if the downward movement does not continue tomorrow, and instead, the price will rush to the 1.1903 level. A week ago, we talked about the 1.17-1.19 side channel, in fact, it remains in action now, the quotes briefly overcame its upper line, but could not continue to grow and instead began a new round of decline within the same channel.

There were absolutely no macroeconomic events on Monday. Nothing interesting in the news calendars of the European Union and America. Moreover, there was nothing interesting among the unplanned events and publications either. The main newsmaker of the market, US President Donald Trump, continues to hand out interviews in which he continues to throw mud at the Democrats, former US President Barack Obama, presidential candidate Joe Biden, vice presidential candidate Kamala Harris, as well as China. Trump blames China for all of America's troubles over the past year, and he claims that Beijing has unfairly treated the United States and also steals in recent decades. Nothing else interesting happened in the world on the first trading day of the week. Therefore, the euro's appreciation today was not associated with any event.

There will be no major macroeconomic events again on Tuesday, August 25. A couple of secondary reports in the US, German GDP data for the second quarter in Germany. We do not expect any surprises from the German GDP, since it has long been known that the reduction will be about 10.1% compared to the previous quarter. It is unlikely that the final change in GDP will differ much from this figure. Accordingly, we do not expect any market reaction to this or US reports.

The following scenarios are possible on August 24:

1) Long deals on the pair remain irrelevant at this time since the price executed a false breakout of the trend line. Thus, buyers still need to wait for a new upward trend to form, new trend patterns to emerge or corresponding downward trend patterns to be canceled. Accordingly, it is not recommended to open purchases before breaking the descending trend line.

2) Selling the currency pair at this time is more relevant since we have a downward trend line at our disposal. Thus, we recommend trading down with the targets at 1.1740 and 1.1700 at this time. Night trading can be calm, and the MACD indicator will change its direction of movement several times. However, each trader decides for himself whether to leave open trades overnight. We would say that there is still a possibility that the pair could fall. You will need to carry out a new analysis and draw new conclusions in the morning.

Important announcements and economic reports (you can always find them in the news calendar) can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal.

Beginners in the Forex market should remember that not every single trade should be profitable. The development of a clear strategy and money management is the key to success in trading over a long period of time.