Analytics and trading signals for beginners. How to trade EUR/USD on May 31? Analysis of Friday. Getting ready for Monday - Kakiforex.com - Financial Market Media No. 1 in the World Analytics and trading signals for beginners. How to trade EUR/USD on May 31? Analysis of Friday. Getting ready for Monday Analytics and trading signals for beginners. How to trade EUR/USD on May 31? Analysis of Friday. Getting ready for Monday
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May 31, 2021

Analytics and trading signals for beginners. How to trade EUR/USD on May 31? Analysis of Friday. Getting ready for Monday

 The EUR/USD pair was trading much more actively on Friday than on Thursday. Although this is strange, since quite important data was published in America on Thursday, while reports that were not that important were released on Friday. Nevertheless, market participants found reasons for more active work on Friday. The pair initially went down by around 65 points, and then up by about 70 points. Although such a sharp change in direction was not associated with the macroeconomic reports that were released. It is also important to take note that the price has gone beyond the upward trend line, which has signaled the continuation of the upward trend for the last two months. However, the quotes have been moving in a relatively narrow channel in the last ten days, while they can not continue to grow to their 3-year highs. We believe that the upward movement will still continue, even if the trend line is broken. And so we recommend that you continue to consider the buy signals from the MACD indicator. Unfortunately, the nature of the pair's movement in recent weeks leaves much to be desired. There is no clear trend movement, so the MACD rarely forms signals that are worth working out. On Friday, it formed three buy signals and all of them are much lower than the zero level, so they should not be worked out.


The picture is, as usual, much more fun on the 5-minute timeframe. To begin with, a very fuzzy buy signal was formed at the very beginning of the European trading session, which, if desired, could be interpreted in any way. The price initially settled below the level of 1.2181, and then above it, and in any case, this signal turned out to be false. It should be worked out by a long position, which would eventually bring a loss of 16 points. But then the signals were more accurate and had brought profit. The next sell signal was formed when the price settled below the level of 1.2181. It was necessary to open short positions here. The quote immediately went beyond the 1.2159 level, without any assumptions and double interpretation, so it was necessary to remain in short positions. As a result, the price went down 40 points, which was enough for any size of Take Profit from the range of 30-40 points, which we recommend. Then the price turned up and began an upward movement. Having overcome the level of 1.2159 from the bottom up, a buy signal was already formed, which should also be worked out. The price was slightly "pushed" near the level of 1.2181, but still overcame it and so a long position was also closed by Take Profit worth 30-40 points. Therefore, the least that novice traders could earn on Friday was 44 points, which is an excellent result.


Trading tips for Monday:


There is still an upward trend on the 30-minute timeframe, so we recommend that you continue to consider long positions. The movement is now complex and ambiguous, so the MACD indicator can form false signals. Therefore, tomorrow we recommend that you continue to track buy signals, but if there are new signs of a flat, then ignore the signals from the MACD indicator. On the 5-minute timeframe, it is recommended to trade from the levels of 1.2133, 1.2159, 1.2181, 1.2215 and 1.2266. Take Profit, as before, is set at a distance of 30-40 points. Stop Loss - to break even when the price passes in the right direction 15-20 points. The target at the 5M TF can be the nearest level, as long as it is not too close or too far away. If it is located, then you should act on the situation. There will be no important macroeconomic reports and other events in the European Union and America on Monday. Therefore, volatility may decrease, but again, you should not expect that the pair will just stand in one place all day.