Analytics and trading signals for beginners. How to trade EUR/USD on July 28. Analysis of Tuesday. Getting ready for Wednesday - Kakiforex.com - Financial Market Media No. 1 in the World Analytics and trading signals for beginners. How to trade EUR/USD on July 28. Analysis of Tuesday. Getting ready for Wednesday Analytics and trading signals for beginners. How to trade EUR/USD on July 28. Analysis of Tuesday. Getting ready for Wednesday
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July 28, 2021

Analytics and trading signals for beginners. How to trade EUR/USD on July 28. Analysis of Tuesday. Getting ready for Wednesday

 The EUR/USD pair was traded with a little greater volatility than usual on Tuesday. Therefore, today falls under the definition of volatile. However, the pair still remains within the horizontal channel of 1,1756-1,1851, which is no longer placed entirely on the chart, as it takes more than two weeks. At the moment, the pair's quotes came up to the upper border of the channel and in the near future they can work it. In case of a rebound from this line, a new round of downward movement can begin. Overcoming this line can allow pairs to continue the long-awaited movement to the upside. However, much will depend not on the level of 1.1851, but on the results of tomorrow's Federal Reserve meeting – the most important event this week. It will be discussed below. The main thing that traders should understand before tomorrow is that the pair may change the direction of movement several times on Wednesday and ignore any technical signals. Especially in the evening, when the results of the Fed meeting will be announced. At the moment, there is still no trend line or channel, so there is no trend now, and you should not trade on a 30-minute timeframe.


Several trading signals were formed on the 5-minute timeframe. The checkboxes indicate when America published reports on orders for long-term goods and consumer confidence. The first report was quite important, and its value turned out to be much lower than expected. Thus, the dollar could become cheaper. However, it managed to do so before the report, so we did not see the reaction of the market at the time when it was published. We now turn to the trading signals. The first was formed in the morning through a breakthrough of 1,1802. After its formation, the price has passed down about 24 points, which was not enough to trigger the least Take Profit, but was enough to install the Stop Loss level to breakeven. Therefore, when the price returned to the level of 1.1802, the transaction closed at zero. The second signal is to buy - formed when the pair settled above level 1,1802. And it also triggered a Stop Loss, set at breakeven, since the price could not immediately reach the target level. Formally, both of these signals were false, but we will draw the attention of novice traders to the price after it passed a significant distance in the right direction. Therefore, the third signal from the level of 1.1802 (rebound) should also be worked out. This time, the price reached the nearest target level of 1.1831, near which it was necessary to close a long position. The profit on the last transaction was about 20-25 points.


Trading tips for Wednesday:


The flat is still maintained on the 30-minute timeframe. The horizontal channel is very clearly visible, and the pair continues to show quite weak volatility, so we still do not recommend novice traders to trade on this timeframe. Here you need to wait for the formation of a trend line or channel and only then track the signals from the MACD indicator. On a 5-minute timeframe, it is recommended to trade from the levels of 1.1802, 1.1831, 1.1851, 1.1880. Take Profit, as before, we 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 located too close or too far away. If you are located – then you should act according to the situation. On Tuesday, there will not be a single important publication or event in the European Union or the United States throughout the day. The results of the Federal Reserve meeting will be announced only late in the evening, and a press conference with Fed Chairman Jerome Powell will also be held. However, by this time, newcomers will already have to leave the market.