InstaForex

August 17, 2021

Analytics and trading signals for beginners. How to trade EUR/USD on August 17. Analysis of Monday. Getting ready for Tuesday

 The EUR/USD pair was trading very sluggishly on Monday. We have already repeatedly said that about three out of five trading days the pair spends either in absolute flat or with low volatility. Thus, almost every three days they drop out of the trading chart, because these days either no trading signals are generated, or they are false. Monday was just one of those days. From the low to the high of the day, the EUR/USD pair passed only 33 points and did not cross any of the levels plotted on the chart. An upward trend line is now signaling an upward trend, so only buy signals from the MACD indicator could be considered. However, the only upward reversal of this indicator occurred well below the zero level, so this signal should have been filtered. And there were simply no other signals. The upward trend is very weak, as is the upward movement itself. However, it remains so for now, so we expect a new round of growth for the European currency.


The picture of the pair's movements on the 5-minute timeframe looks very dull on Monday. Unfortunately, the first buy signal was formed when the upward movement had already begun, but at the same time look at how well the price moved during the day. It spent almost all of its time in one direction and there were nearly no pullbacks. It's a pleasure to work with such movements. So, the signal formed around the levels of 1.1752 and 1.1756, when the price broke them. This was followed by an increase to the level of 1.1802, from which the price bounced twice. Thus, novice traders could take profits either using Take Profit, or near the level of 1.1802. In any case, they would have made a profit.


Trading tips for Tuesday:


The EUR/USD pair continues its upward movement on the 30-minute timeframe, which can be quite long, but very weak. The main thing is that now there is an upward trend line, which acts as a support for bull traders and a reference point. That is, buy signals from the MACD indicator can theoretically be considered. However, we remind you that volatility remains very weak. A price rebound from the trend line can also be regarded as a buy signal. On the 5-minute timeframe, it is recommended to trade from the levels of 1.1752 (1.1756), 1.1802, 1.1831. 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. On Tuesday, the volatility of the pair may rise. The European Union will publish a report on GDP for the second quarter. It is unlikely for it to provoke a strong movement of the pair, but anything can happen. The main thing is that novice traders do not lose their vigilance, since surprises do happen in the foreign exchange market. Reports on retail and industrial production are due in the US in the afternoon. And here - the same thing. It is likely that the markets will ignore them. But if the actual values do not strongly coincide with the predicted ones, a reaction may follow.