The EUR/USD currency pair began to correct against the upward movement on Wednesday. Take note that the results of the Federal Reserve's two-day meeting were summed up yesterday evening, which the market participants did not like, and as a result the dollar was sold. Short positions ended today, which allowed the pair to slightly decline. However, today traders have already ignored the US GDP report for the first quarter of 2021, which, in our subjective opinion, turned out to be quite strong. However, the US dollar did not grow after this report, and the volatility during the day was 47 points. In general, the pair continues to trade in a very inconvenient manner, especially for novice traders. Moreover, an extremely small number of signals are generated, and most of the generated ones are false. There was only one buy signal that was generated from the MACD indicator. A false one. It resulted in around 10 points-worth of losses, since the indicator had already turned down literally an hour later. It's good that everything worked out with just one false signal. In general, the upward trend continues, but with such a movement, filtering out the sell signals does not help much.
Now let's take a look at the 5 minute timeframe. The picture is even more eloquent here. The pair moved 25 points from high to low during the entire European session. The price still managed to reach the 1.2112 level, which eventually lost its relevance, forming a buy signal around it - a rebound. However, as you might guess, with such volatility, the pair went up 15 points, which was enough to set Stop Loss to zero. Therefore, the Stop Loss deal was closed at breakeven. Traders then tried to "revive the pair" during the US session, but quickly gave up. To be honest, after the "mega-active movements" at the European session, we would not have entered the market at all. By the way, the signal that we wrote about in the first part of the article was duplicated by a signal on a 5-minute timeframe. Here it formed several hours earlier, so losses could have been avoided. Well, it was generally not necessary to open positions during the US session after what we observed during Europe.
How to trade on Friday:
On Friday, we recommend trading on the 30-minute timeframe, still buying, as the upward trend continues. However, at this time, the pair is moving in an inconvenient manner, so you should probably wait a couple of days and not enter the market. Nobody knows when this awkward movement will end. Formally, each signal to buy the MACD indicator can be worked out, but novice traders must decide whether the increased risks that are currently available are suitable for them. Novice traders can trade tomorrow also from the levels 1.2056, 1.2092 and 1.2150 for a rebound or overcoming 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 levels on the 5-minute timeframe are the same, since we removed the weakest ones. We remind you to use only the most accurate and clear signals possible. The European Union will publish the consumer price index for April, as well as the level of GDP and the unemployment rate. A package of very important reports that can trigger a reaction in the market. You should be especially careful with any positions after these reports are published. There are several minor reports in America tomorrow, which are unlikely to cause a reaction from traders.
