InstaForex

August 16, 2021

Analytics and trading signals for beginners. How to trade EUR/USD on August 16. Analysis of Friday. Getting ready for Monday

 The EUR/USD pair finally moved more or less adequately on Friday. Recall that in recent months, every 3 out of 5 trading days have been running with low volatility and were almost completely flat. Thus, there are really few days when the pair moves strongly and in a trend. Friday was just one of those days. Although at first nothing was in favor of this, since important macroeconomic reports were not released on August 13. Nevertheless, the pair started to almost rise in the morning, and in the afternoon, the US consumer sentiment index from the University of Michigan provided unexpected support for the euro. This indicator decreased by the end of August from 81.2 to 70.2 points, which caused additional pressure on the US dollar. Markets usually pay little or no attention to this index. However, this time, apparently, the discrepancy between the forecast and the actual value was too great. As a result, the pair rose by 75 points during the day, which has not happened for a long time. In addition, the MACD indicator has generated a buy signal for the first time in a very long time. And also an upward trend line was formed, which also supports the upward trend. Thus, Friday the 13th turned out to be a very successful day for traders in practice. On the MACD signal to buy, traders could enter the market at the level of 1.1742 and earn 30-40 points in Take Profit.


The picture of the pair's movements also looks pretty good on the 5-minute timeframe. 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 rollbacks. 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 Monday:


The EUR/USD pair started an upward movement on the 30-minute timeframe, which can be quite long. The main thing is that now there is an upward trend line, which acts as a support for bull traders and a reference point. At the moment, the MACD indicator is too high for new buy signals, so you need to wait until it goes down to zero. 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, 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. Neither the United States nor the European Union will publish a single important event on Monday. Thus, it is likely that volatility will again be low, and there will be no trend movement.