January 13, 2022

How to trade EUR/USD on January 13? Simple tips for beginners. The euro has left its horizontal channel thanks to the US inflation report

 The EUR/USD pair was trading in an upward direction on Wednesday. Finally, after a month and a half of absolute flat, traders managed to get the pair out of the horizontal channel, so now there is every reason to assume the beginning of a new upward trend. We have formed a new ascending channel on the 30-minute TF, which confirms the upward trend at this time. If we talk about fundamental factors, then the euro currency has little reason for growth now. However, the dollar sharply strengthened in the second half of 2021, so for technical reasons, growth is now more preferable. As for today's report on US inflation, it showed that it continues to rise and accelerate. This figure rose to 7.0% at the end of December, which is an anti-record for the last 40 years. Federal Reserve Chairman Jerome Powell announced a day earlier that his department would fight against the rise in consumer prices, but so far we see only inflation growth.

Today's movement was almost perfect on the 5 minute timeframe. Despite the fact that there was a total flat in the first half of the day. Markets have been waiting for the inflation report since the morning and, when it was published, reacted violently to it. The time when the report was published is marked with a tick. Thus, only one trading signal was formed during the day. The pair was near the support area of 1.1360-1.1366 for a long time, after which it nevertheless pushed off from it. Moreover, there were actually two rebounds (the first was in the middle of the European trading session) and novice traders could already open long positions during the first. It was necessary to place a Stop Loss order below the level of 1.1360 when US data were published, but the movement turned out to be in the right direction. The price broke through the levels of 1.1387 and 1.1422 without any problems, and the long position could be manually closed in the late afternoon. The profit on it was about 60 points. If beginners used Take Profit, then the profit ranged from 30 to 40 points.

How to trade on Thursday:

On the 30-minute timeframe, you can clearly see that the price has finally left the horizontal channel, so now preference is given to trades for growth. For example, you can work out signals for a rebound from the lower boundary of a new ascending channel. In general, we believe that the euro will continue to rise in the coming weeks. On the 5-minute timeframe, the levels for January 13 are as follows: 1.1360-1.1366, 1.1387, 1.1422, 1.14696. Recall that for any trade, you should set Take Profit 30-40 points and Stop Loss at breakeven after passing 15 points in the right direction. The deal can also be closed manually near important levels or after the formation of an opposite signal. There will be little macroeconomic statistics on Thursday, and no important statistics at all. Secondary reports will be published in America, which the market is unlikely to pay attention to and work them out. Therefore, tomorrow the volatility of the pair may decrease.