The EUR/USD pair traded very well on Monday. Volatility of the day was about 70 points. Considering that there were no important statistics on Monday, as well as no fundamental events, this is a very good market activity. Thus, it was possible and necessary to trade. On the 30-minute timeframe, the pair continued to move inside the horizontal channel and bounced off its lower border. It happened at night, however, the signal from this did not become weaker. However, we will consider it below, when studying the lower TF. For now, let's just say that there will be very few macroeconomic events this week, so the pair may well continue to move in the 1.1234-1.1355 range . Unfortunately, nothing else can be said about the technical picture now. It is flat.
The pair's movements require more detailed consideration on the 5-minute timeframe. Although, by and large, the price moved in only one direction all day and did not change it. A rather difficult situation emerged in the morning, when the price bounced off the level of 1.1234. It did so at night, so these signals had to be skipped, however, at the time of the opening of the European trading session, the price went very close to the point of formation of these signals, so it was possible to take a risk and open long positions. This is the case when the risk was justified. Signals are often formed when the pair manages to go very high from the level where there was a rebound or breakthrough. In our case, the movement was very calm, so the price simply did not have time to go far up. Subsequently, the price went up another 60 points, but failed to reach the nearest target level. Therefore, a long position should have been closed at Take Profit (30-40 points). It should also be noted that there is not a single local level between the levels of 1.1234 and 1.1348 (lows, highs of individual days). This does not make sense for a flat, as the price will very often cross such levels and generate false signals.
How to trade on Tuesday:
On the 30-minute timeframe, the EUR/USD pair is in the 1.1234-1.1355 horizontal channel. Since a rebound followed from its lower border, so now we expect a round of upward movement to the upper border. If the pair manages to overcome any of the boundaries, this may mean the emergence of a new trend. On the 5-minute timeframe, the key levels for December 21 are 1.1186, 1.1227 - 1.1234, 1.1348-1.1355, 1.1422. 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 points. At the 5M TF, the target can be the nearest level if it is not too close or too far away. If it is, then you should act according to the situation or work according to Take Profit. Not a single important report will be published in the European Union and the US on Tuesday. Thus, volatility may be low, but at the same time not weak, as Monday showed that the markets are ready to continue trading the pair.
