The EUR/USD currency pair mainly moved upwards on Wednesday, but in the middle of the European trading session there was a segment during which the price jumped up and down, causing a lot of trouble and problems for traders. But first things first. We should start with the fact that today the European Union published a report on industrial production, which turned out to be much worse than the forecasts of experts. Yesterday we said that this report is unlikely to have any impact on the euro / dollar pair. And so it happened. Traders did not even notice this publication. Thus, the most important and significant event of the day was Jerome Powell's speech to the US Congress, which began a couple of hours ago. Based on the movement of the pair in the past few hours, at the moment, the head of the Fed has not reported anything important to Congress. Or, nothing is known about this yet, since it is unlikely that Powell's speech is being broadcast live from Congress. Thus, it is likely that what the Fed chairman said will be known in the morning. Then you should expect a reaction from traders.
Four signals were formed on the 5-minute timeframe during the day, which should have attracted the attention of novice traders. The first signal, like the second, like the third, formed around the level of 1.1784, which is losing its relevance from today. However, the pair first overcame it, then bounced off it, and then made a false breakout, which novice traders could falsely take as a sell signal. Thus, the open deal to buy at the very beginning of the European session did not bring any profit, but only losses of 13 points. Also, the second sell trade became unprofitable, which newbies could open due to the fixation of quotes below the level of 1.1784. On it, the loss amounted to 16 points. Unfortunately, this happens. However, then the price again overcame the level of 1.1784, which should have been worked out with a buy deal, which eventually covered all the losses from the previous two deals. The price moved upwards by more than 40 points in total, which was enough for the long position to be closed in profit by Take Profit. Thus, at the end of the day, beginners could even make a small profit, although the morning trading was certainly terrible.
Trading tips for Thursday:
The upward trend was canceled on the 30-minute timeframe, but the new one was not formed. Thus, the pair can continue to move in the near future absolutely randomly, 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. Volatility can be high due to strong macroeconomic or fundamental background and weak if news and publications are not available. On a 5-minute timeframe, it is recommended to trade from the levels 1.1772, 1.1807, 1.1851 and 1.1880. 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 Thursday, there will be no important publications or events in the European Union, and with the United States, Jerome Powell's second speech in Congress will take place. In general, we recommend tomorrow morning to trace the essence of the speech of the head of the FRS, as the Europeans and Americans can work it out during Thursday.
