The EUR/USD pair was trading less actively on Monday than on Friday, which is not surprising, given the absolutely empty calendar of macroeconomic and fundamental events. The pair stood between the levels of 1.2150 and 1.2174 all day. Moreover, these levels were formed a long time ago, that is, it turns out that they simply worked perfectly in strength and kept the pair within themselves. Therefore, novice traders can now look to the formation of strong signals when the price tries to leave the specified range. In general, the upward trend continues after the pair has settled above the downward trend line, as can be seen in the chart. Of course, in many respects we are now observing an upward movement thanks to Friday's US reports, which turned out to be much worse than traders' expectations, which led to the strongest drop in the US currency (= growth of the euro/dollar pair). However, in general, the upward trend has been maintained for more than a month, which is clearly seen on the higher timeframes. Only one buy signal from the MACD indicator was generated on Monday, which should have been ignored, since the price returned to the level of 1.2174 at that moment, from which it had already bounced off earlier, so the probability of a new rebound was high, therefore it was necessary to wait for overcoming this level to open buy orders.
Now let's take a look at the 5 minute timeframe. Here the picture is even more eloquent. Except for when the price settled below the level of 1.2150 (for a short time), the flat is visible to the naked eye. Thus, novice traders could open short positions for this signal at the beginning of the European trading session, however, as we can see, the signal turned out to be false, so a trader would lose around 16 points on it. A buy signal was immediately generated, afterwards, the pair rose to the level of 1.2174, where novice traders could manually take profits, although we usually recommend considering the nearest level as a target only if it is not too close. However, today there was a case when this rule should have been changed, since the price rebounded off the level of 1.2174 twice overnight. Thus, novice traders could finish the day at approximately zero or with minimal losses. At this time, the quotes dropped to the level of 1.2150 again, so there may be a new rebound. However, we do not recommend processing this signal. It is better to wait for the pair to get out of the current horizontal channel.
Trading tips for Tuesday:
On Tuesday, novice traders still have a clear trend on the 30-minute timeframe, therefore, buy signals from the MACD indicator should be considered. This indicator is already close to the zero level, so it can form strong signals. However, you should be careful, because if a buy signal forms like today, below a strong level from above, you should wait for confirmation. It is recommended to trade from the levels 1.2137, 1.2150 and 1.2174 on the 5-minute timeframe. Moreover, it is better to trade from the levels 1.2450 and 1.2174 to overcome, and not to rebound, as otherwise the flat will remain. Take Profit, as before, is set at a distance of 30-40 points at 30M. Stop Loss - to breakeven when the price passes in the right direction by 15-20 points. At the 5M timeframe, the target is the closest level if it is not too close or too far away. If located - then according to the situation. Recall that it is best to trade using the most accurate and clear signals, and ignore inaccurate ones. On Tuesday, neither the European Union nor the United States will have any important statistics or fundamental events.
