The EUR/USD pair as a whole continued to move mainly sideways on Wednesday. At this time, the pair still lacks a clear trend. There was a slight upward bias during the day, but one could clearly see that the pair is now in a horizontal channel between the 1.1752 and 1.1851 levels. That is, in a 100-point horizontal channel. The only thing that distinguishes this movement from a flat is its regularity. Usually, in a classic flat, the price is constantly reaching the boundaries of the horizontal channel, bouncing off them. In our case, the movement is very smooth and the price overcomes the distance of 100 points in 4-5 days. Thus, the current situation on the 30-minute timeframe remains unfavorable for trading. There were no macroeconomic reports on Wednesday. Not in the US or the European Union. Novice traders had nothing to react to during the day. In general, we continue to expect an upward movement for the pair.
Quite a lot of trading signals were generated on the 5-minute timeframe, as the price often crossed important levels. However, several signals were quite complex and ambiguous. Let's see how you should have traded during the day. The very first signal - to sell - was formed early in the morning. It turned out to be quite strong and accurate: the price settled below the level of 1.1772. Therefore, it should have been worked out with a short position. And since the price subsequently reached the level of 1.1756 and bounced off it, then it was necessary to close the short position and open a long position here. The profit on the short position was about 5 points. The long position turned out to be more complicated. The price initially crossed the level of 1.1772 from the bottom up, but then traded along this level for several hours and finally settled below it. At this consolidation, longs should have been closed at a profit of about 5 points. And open shorts again. The sell signal, however, turned out to be very weak and frankly false, since the price could not even go down by about 15 points, after which it again settled above the level of 1.1772. Thus, the loss reached 11 points, but here it was necessary to open a new long position. The last trade of the day turned out to be quite profitable, considering that the total volatility was again equal to about 50 points. The price has reached the next level at 1.1802 and bounced off it. Profit = 17 points. Thus, novice traders could earn about 15 points for the day. The rebound from the level of 1.1802 should not have been worked out, as it was formed quite late in time.
Trading tips for Thursday:
There is still no trend on the 30 minute timeframe, so trading on this timeframe is not recommended yet. The horizontal channel is clearly visible, and the pair continues to show rather weak volatility, so it is best to immediately switch to the lower chart, and wait for a trend line or channel to form at the current one. On a 5-minute timeframe, it is recommended to trade from the levels of 1.1756, 1.1772, 1.1802, 1.1822, 1.1851. 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. An important event will take place in the European Union on Thursday - the European Central Bank meeting. ECB President Christine Lagarde will also give a speech. And then we only have a report on claims for unemployment benefits in America, which is unlikely to provoke a reaction from the markets.
