The EUR/USD pair was trading more actively on Tuesday than on Monday and more than 60% of the days in recent weeks. The upward trend line has lost its relevance, as the price has overcome it in today's trading. However, before breaking the trend line, the price managed to bounce off it, which is not very good, since this rebound could be interpreted as a buy signal. However, we will consider the signals, but for now it should be said that the trend has changed to a downward one, but the price was unable to drop below the level of 1.1710 (1.1703), which is the previous local low. Therefore, until this level is overcome, further downward movement is in question. It should also be noted that today's downward movement seems to have been triggered by the current difficult situation in Afghanistan. At such moments, many market participants are looking for safe assets, which include the dollar. A buy signal did not bring profit to novice traders, but the price still went up 15 points, so a Stop Loss should have been set at breakeven, at which the deal was closed. The second sell signal could also be worked out, but 10 minutes before its formation on this timeframe, a similar signal was formed on the 5-minute one. Therefore, a short position there was opened faster.
The picture of the pair's movements on the 5-minute timeframe looks quite interesting on Tuesday. 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 rebounded 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 Wednesday:
The EUR/USD pair has settled below the trend line on the 30-minute timeframe, so now the trend is already downward. However, we highly doubt the ability to overcome the 1.1710 level. Therefore, we recommend not to rush too much with new short positions. Nevertheless, the signals to sell from the MACD indicator can be considered, but taking into account the fact that the level of 1.1710 may be too tough for the bears. On the 5-minute timeframe, it is recommended to trade from the levels 1.1689, 1.1710 1.1752 (1.1756), 1.1802. 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 Wednesday, the European Union will publish the consumer price index, and the US will publish the Federal Reserve minutes. We believe that both of these reports can be ignored, but novice traders should still be prepared during their publication for an increase in price movement or reversal.
