The EUR/USD pair was again trading very sluggishly on Monday. At the moment, the volatility of the day is only about 50 points, which is very small even for the euro/dollar pair, which is traditionally considered not a very volatile pair. For most of the day, the pair generally stood in one place, so it was absolutely impossible to trade. However, in recent articles, we have repeatedly warned novice traders that a flat is very likely and recommended ignoring all signals from the MACD indicator on the 30-minute chart. Especially since today the flat was visible to the naked eye. The price simply refused to move. The most interesting thing is that just today the MACD indicator formed a good buy signal, near the zero level, and the price subsequently went up the necessary 30 points. However, the overall picture of the situation has not changed and still implies trading in a very narrow price range in nature close to flat. Today, neither the European Union nor the United States has had a single important report or other event. Therefore, during the day, novice traders had nothing to react to.
The picture is more interesting on the 5-minute timeframe, but not by much. It should be noted at once that several quite interesting signals could be formed during the day, but the price did not reach the level of 1.2181 just a few points each time. Thus, not a single signal was formed during the European trading session. In the US session, the price finally started to move a little, which resulted in the formation of a single buy signal, and even then in the late afternoon, when we recommend closing all positions. Formally, this buy signal-overcoming the level of 1.2215 - could be worked out. In this case, at the moment, this transaction should have been closed manually, since it is nearing night. In this case, beginners could earn about 10 points.
Trading tips for Tuesday:
The upward trend is still maintained on the 30-minute timeframe, so we continue to recommend considering long positions. However, the movement remains complex and ambiguous, so the MACD indicator can generate false signals. Thus, tomorrow we recommend that novice traders continue to monitor buy signals, but if flat signs appear again, then ignore the signals from the MACD indicator. It is recommended to trade from the levels 1.2159, 1.2181, 1.2215 and 1.2266 on the 5-minute timeframe. 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. At 5M TF, the target can be the nearest level if it is not too close or too far away. If located - then you should act according to the situation. On Tuesday, the European Union will publish reports on inflation and business activity in the field of manufacturing for May, as well as the unemployment rate for April. We recommend paying special attention to inflation, while the rest of the reports, most likely, will not interest the markets. In America, there is a rather important index of business activity in the ISM manufacturing sector, but if its value does not decrease significantly compared to the previous month, we also do not expect a strong market reaction.
