The EUR/USD pair tried to continue the upward movement that began a couple of days ago, but very quickly abandoned this idea. Unfortunately, the new upward trend line lost its relevance on Monday. Just like the day before, the downward trend line lost its relevance. Unfortunately, the euro/dollar pair has been trading in a very unappealing manner lately, and the volatility leaves much to be desired. What profit can we expect if the pair passes 50 points from the low to the high of the day? Even if you can catch the movement at the very beginning, this is a peak of 30 points of profit. But the day is long. During this time, the price can repeatedly change the direction of movement, form false signals... In general, this is what we observed on Monday. By the way, it was really hard to count on a strong movement today, since macroeconomic reports were not published today and there was neither a single important speech or other event. Thus, at this time, the trend for the pair has not been determined again, and the movements can be as weak as possible in the near future and illogical.
Exactly what we talked about above is clearly visible on the 5-minute timeframe. At first, the pair was in an upward movement, then in a downward movement, then again in an upward movement and again in a downward movement. That is, at least three reversals per day, and this is without taking into account the Asian trading session. In total, four trading signals were formed during the day - all around the level of 1.1851. First, the price overcame it from top to bottom, forming a sell signal that novice traders could work out. However, the price went down no more than 10 points, which was not enough even to set the Stop Loss level at breakeven. Further, the price crossed the level of 1.1851 from the bottom up, having already formed a buy signal. This time, beginners were lucky, since the price again did not go up 30 points required for the minimum Take Profit and did not reach the nearest level of 1.1895, but went up 15 points, which was enough to set Stop Loss at breakeven. And so we did not receive a loss on this deal. Two subsequent signals - rebounds from the level of 1.1851 should not have been worked out for two reasons. First, two false signals had already been formed near the level of 1.1851 at that time, which did not lead to profit. Secondly, it was approaching evening, when we no longer recommended opening new positions.
Trading tips for Tuesday:
The downward trend was canceled on the 30-minute timeframe, but the upward trend was canceled as well. Thus, the pair can move randomly in the near future, that is, in different directions without any logic. At this time, traders do not have a clear trading strategy, so the pair can be thrown from side to side if the volatility was high. And so the movements can be as smooth and sluggish as possible and in different directions. On the 5-minute timeframe, it is recommended to trade from the levels 1.1825, 1.1851, 1.1880, 1.1895, 1.1912 and 1.1921. 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 the 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. The US will publish its June inflation report on Tuesday. This is potentially a very important report, so market reactions may follow.
