The EUR/USD pair initially continued its corrective movement, afterwards it made an upward reversal and tried to start a new round of the upward trend. However, from the outside, it looked as if traders simply had not decided which way to trade. In principle, it is not surprising, since today marks the third consecutive day where macroeconomic reports are not published, and there also weren't any important news or events. Market participants simply have nothing to react to. Of course, having no macroeconomic reports does not always mean that there would be no movements. For example, the pair sharply increased on Monday, although there was no news and reports then. And so there are different situations. Let us remind you that an upward trend remains present on the 30-minute timeframe, supported by an upward trend line. Therefore, we should have considered buy signals from the MACD indicator. Only one of these was formed during the day and it was formed much below the zero level, so it should not have been worked out. In addition to it, two signals were generated from the 1.2023 level, each of which can be safely called false. The first sell signal was too weak, and the price went down by only 16 points, which was enough to set Stop Loss to breakeven. The second buy signal was formed a couple of hours ago, and the price has not really managed to go in either direction. But there is a high probability that this signal will be false.
Now let's take a look at the 5 minute timeframe. Two signals formed here during the day - exactly the same as on the 30-minute timeframe. It would have been better, of course, to try to work them out on the 5-minute timeframe, and in any case it could not be otherwise, since they formed here. The levels 1.1999 and 1.2044 are the lowest and peak of the day, that is, they could not be used today because they simply did not exist yet. Thus, when the first sell signal was formed, the target was the 1.1990 level, and when the second one was formed for the long position, it was the 1.2082 level or Take Profit of 30-40 points. However, none of the goals were ultimately achieved. Losses on the first deal were avoided thanks to Stop Loss at breakeven. On the second signal, it is better to close the deal now, since it is unlikely that the upward movement will continue at night. Not the best day in terms of trading, but it's good that we managed to do without losses.
How to trade on Thursday:
We recommend trading on the 30-minute timeframe on Thursday, still buying, as the upward trend continues at the moment. The upward trend line continues to support bull traders. The MACD indicator was discharged quite well on Wednesday, and the pair continues to correct. Therefore, strong buy signals can be expected tomorrow. Also, novice traders can trade from the levels 1.2023, 1.2082 and 1.1990 for a rebound or a 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. The situation on the 5-minute timeframe has cleared up a bit, but recently the price has been very reluctant to reach the existing levels and does not form clear signals. The European Union is set to summarize the results of the European Central Bank meeting, as well as a press conference with ECB President Christine Lagarde. Potentially, strong movements or sharp reversals are possible at this time. Therefore, novice traders are advised to trade with extreme caution during this event or they could even leave the market altogether.
