The EUR/USD pair traded absolutely indistinctly again on Tuesday. Basically, when you look at the 30-minute timeframe, everything becomes clear without any more explanation. The pair continues to move mostly sideways, although the upward trend is formally maintained, which is signaled by an upward trend line. However, as we have said more than once, the movement for the euro/dollar pair is extremely weak, so the trend is only formal. Therefore, signals from the MACD indicator are generated quite rarely. Therefore, the signals themselves must be worked out extremely cautiously. Since, in fact, there is no trend now. Moreover, not only is the trend absent. For example, there is no macroeconomic statistics, as well as a fundamental background. Market participants simply have nothing to react to, especially this week.
Six trading signals were formed at once on the 5-minute timeframe on Tuesday, and none of them led the pair to the nearest target. That is, none of the nearest target level was reached, respectively, all signals turned out to be false. However, there is nothing surprising here, since the volatility of the pair on August 3 is exactly 40 points. This is a very low value. Thus, novice traders continue to observe what movements are and what signals are formed when the pair passes from the low to the high of the day by 40 points. In principle, today newcomers could do without serious losses. It is good that the first two signals in the form of rebounds from the level of 1.1880 turned out to be false and brought a loss of only 10 points when the price settled above the level of 1.1880. This falsity of the first two signals allowed us to filter out all subsequent signals around the 1.1880 level. Thus, we can say that traders are lucky today. However, in any case, losses are not good. Unfortunately, such periods do happen, so beginners have a choice here: either do not trade for a while, or work every day so as not to miss a strong movement and the end of the current flat.
Trading tips for Wednesday:
The EUR / USD pair continues to remain in an upward trend on the 30-minute timeframe. However, it is very weak, as is the trendline, which has an extremely weak slope. Therefore, it is hardly worth expecting that the price will often fall, or, on the contrary, will show a strong upward movement every day. In general, the EUR/USD pair is still facing low volatility and there is no trend movement, which greatly complicates the trading process. Thus, formally, we can now consider buy signals from the MACD indicator, but this should be done with the utmost care. Unfortunately, this indicator rarely generates the necessary signals. On the 5-minute timeframe, it is recommended to trade from the levels 1.1831, 1.1851, 1.1880, 1.1912, 1.1921. 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. The European Union will publish reports on retail trade and business activity in the service sector on Wednesday. We believe that the markets will not react in any way to this information, unless it is downright discouraging. But there will be an ISM index for the services sector in the US, as well as an important ADP report on changes in the number of employees in the private sector. The market reaction may follow these reports.
