On Wednesday, the EUR/USD pair spent the whole day staying at one point which can be clearly seen in the picture. In almost half an hour, the Fed will announce the results of the meeting. So it seems that today market participants were reluctant to trade the pair ahead of the statement from the US regulator. On the 30-minute time frame, a weak downtrend movement remains in place. As we've mentioned before, this movement is nominal since the quotes of the pair are moving almost sideways. Thus, we still do not advise beginners to pay attention to the MACD indicator and the signals it generates. As for the prospects of the currency pair, they are currently vague.
On the 5-minute time frame, not a single trading signal has been generated during the day. This is such a rare case that it can be recorded in textbooks. Usually, the 5-minute time frame has many levels that the price is testing during the day. However, on Wednesday, the daily volatility of the pair was within just 25 pips which is obviously not enough to even approach any of the levels. Of course, the pair may surge or collapse in just half an hour as markets usually react even to the past meetings of central banks. However, novice traders are not recommended to trade during such important fundamental events. Thus, there is no sense in trying to follow any future movements of the pair today. It is too dangerous, especially for beginners.
Trading tips for Thursday
On the 30-minute time frame, the pair is trading in a very weak downtrend channel, and there is no sign of a trend right now. Therefore, we still do not recommend that beginners follow any signals from the MACD indicator on the 30-minute time frame. It is better to wait for the resumption of the trend and trade consciously rather than trying to earn 10 pips when the overall volatility is just 30-40 pips. On a 5-minute time frame, it is recommended to trade from the levels of 1.2092, 1.2104, 1.2143, and 1.2159. Set a Take Profit at a distance of 30-40 pips. Place a Stop Loss to a breakeven point when the price moves by 15-20 pips in the right direction. On the 5M chart, the nearest level can serve as a target unless it is too close or too far away. If it is, then you should act according to the situation. On Thursday, the European Union will publish a report on inflation for May which is unlikely to arouse any interest among traders. The fact is that the first estimates of inflation for this month have already been published, so it is unlikely that anything will change in the second estimate. Markets already expect to see the acceleration of inflation to 2.0% y/y. Meanwhile, not a single important report will be published in the US tomorrow. Nevertheless, the price movements on Thursday may be quite sharp as a result of today's Fed meeting.
