The EUR/USD pair as a whole continued to move mainly sideways on Monday, but with greater volatility compared to Friday. There is still no clear trend, trend line or channel for the pair. In principle, the illustration above clearly shows that the price in the last week is between the levels of 1.1772 and 1.1851. Thus, we have a full-fledged side channel. Today the price bounced off its lower boundary, so novice traders had a good buy signal during the day. Nevertheless, it is still not recommended to trade on the signals from the MACD indicator on the 30-minute timeframe. We would like to draw the attention of a newcomer to the fact that the pair has been unable to overcome the level of 1.1772 for quite a long time. Therefore, further strengthening of the American currency is in question. The fundamental background from the European Union is now neutral, but this week will be summing up the results of the meeting of the European Central Bank. And this is always an important event.
The pair moved pretty well on the 5-minute timeframe and reached important levels with pleasure. It all started in the morning, when the price consolidated below the level of 1.1796, forming the first sell signal, which should have been worked out with short positions. The downward movement did not last long, however, the nearest level of 1.1772 was worked out. Close to it, sell orders should have been manually closed, since a rebound followed with the formation of a buy signal. Basically, both buy signals around 1.1772 were very fuzzy. The pair was consolidating below this level by literally 5-6 points, which can be considered a break with a big stretch. We interpret these signals as bounces, but in fact, it was very difficult for novice traders to define them exactly as bounces. Thus, it is possible that losses were received on these signals. It's good that they are small. The next buy signal was already strong enough. The price bounced / broke the level of 1.1772 and subsequently crossed the level of 1.1796 and worked out the level of 1.1822 (Friday's high). Thus, about 30 pips could be earned on a long position. A rebound from the level of 1.1822 was also a signal to sell. And it also had to be worked out. The price dropped to the level of 1.1796, from which it bounced again, bringing about 10 more points of profit to novice traders. Thus, today beginners could earn several dozen points.
Trading tips for Tuesday:
There is still no trend on the 30-minute timeframe, so it is not recommended to trade on this timeframe yet. The side channel is very clearly visible, and the pair continues to show rather weak volatility, so it is best to immediately switch to the younger chart, and wait for the formation of a trend line or channel at the current one. On a 5-minute timeframe, it is recommended to trade from the levels 1.1772, 1.1796, 1.1822, 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 Tuesday, neither the European Union nor the United States is scheduled to publish a single important event. Thus, it is highly likely that tomorrow the pair will experience low volatility again.
