The EUR/USD pair was not trading very actively on Tuesday. The pair is still inside the downward trend channel, which is very weak. Weak in the sense that its angle of inclination makes it possible to interpret the current movement as a weak downward trend and almost flat. Thus, we cannot conclude that there is a trend movement for the pair. This means that signals from the MACD indicator should still be ignored and expected when a real trend will form for the pair. No important report from the European Union, while a retail sales report was published in America. However, this report turned out to be significantly weaker than forecasts, therefore, it did not provide support to the US dollar. The downward movement, which began in the European trading session, was replaced by an upward pullback in the US one. Overall, the dollar has excellent chances of a resumption of the upward trend.
The technical picture is almost perfect on the 5-minute timeframe. Only two trading signals were formed during the day, and both are perfect in accuracy. Let's break them down. At first, the price reached the level of 1.2143 and bounced off it. Yes, for a while, traders clearly did not know what to do near this level, but then a downward movement began, which, of course, should be worked out with a short position. After this signal was formed, the quotes went down 33 points and reached the 1.2104 level. Therefore, the short position could be closed both at Take Profit and at the level of 1.2104. In any case, novice traders would earn about 30 points on it.
This was followed by an even more accurate rebound, but from the level of 1.2104, which also had to be worked out, but with a long position. As a result, the price went up about 15 more points. At the moment, this trade can be manually closed, since the trading day is almost over. Also, as you can see in the chart, a tick marks the time when the retail sales report was published in America. Usually, we do not recommend opening trades when important reports are released, but in this case, the signal was very strong and accurate, plus it became clear that the US dollar will not receive support from the retail trade data,which means that it should fall. Therefore, it was necessary to open a long position. In total, beginners could earn 45-50 points today, which is an excellent result, given the overall volatility of the day at 46.
Trading tips for Wednesday:
The pair is in a very weak descending channel on the 30-minute timeframe, and there is no sign of a trend right now. Therefore, we still do not recommend novice traders to track any signals from the MACD indicator on the 30-minute timeframe. It is better to wait for the resumption of the trend movement and trade consciously, and not at random. On the 5-minute timeframe, it is recommended to trade from the levels of 1.2092, 1.2104, 1.2143 and 1.2159. 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. At the 5M TF, the target 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. The European Union does not have any important events on Wednesday. Meanwhile, in the United States, the results of the Federal Reserve meeting will be summed up in the evening. This event will take place really late in the evening, so before it, traders have a whole day to trade calmly. However, we warn that often on the days of the publication of the results of the central bank meeting, strong movements can be observed even before the results are announced.
