On Monday, February 28th, the EUR/USD pair saw choppy trading again. In the first hour after the market opening, the pair plunged 150 pips from Friday's closing levels. So, it has become clear from the start that Monday's session is going to be yet another roller coaster. In the subsequent trades, the pair was trying to recoup overnight losses. However, the pair barely touched the technical levels. In addition, there were few strong technical signals. No important macroeconomic reports were scheduled for release on Monday. The only event that could attract attention was the speech of ECB President Christine Lagarde but she did not provide any significant comments. Therefore, fundamental factors did not influence the price movements on Monday. The driving force was numerous geopolitical updates received during the weekend.
In the 5M chart, it was hard to find any trading opportunities, but there was a chance of gaining some profits. For a start, the trend was not flat which is good. During the day, the pair reversed several times, and the movements were quite active. The first buy signal was formed in the early European session when the pair broke the level of 1.1165. After that, it added about 30 pips and returned back to the level of 1.1165. So, the first buy deal was closed by a Stop Loss. When the pair rebounded from 1.1165, it was reasonable to open new long deals that would bring a decent profit of about 35 pips as the quotes reached 1.1228 and rebounded thereafter. This was the right moment for placing short positions upon receiving a sell signal. After it was formed, the price dropped by 30 pips, so newbies had a chance to profit from that deal. The last two signals were inaccurate, and it was impossible to distinguish whether these were buy or sell signals. The first signal turned out to be false whereas the second one was not worth our attention as two other false signals were formed near 1.1228.
Trading plan for Tuesday:
In the 30M time frame, the upward trend was invalidated. At the same time, a new trend has not been formed yet. First, the movement is too strong. Second, there are no pivot points that could be used for trend formation. Third, the havoc persists in the market, so price movements are hard to predict. Therefore, keep cautious and don't forget to set Stop Loss orders. The target levels in the 5M time frame can be found at 1.1106, 1.1136, 1.1165, 1.1228, 1.1279-1.1292, 1.1330, 1.1367. As soon as the price goes 15 pips in the right direction, set a Stop Loss order at a breakeven point. On Tuesday Christine Lagarde will speak again. Besides, the EU manufacturing PMI report will be released. The United States will unveil the ISM manufacturing index. However, these events are likely to have a minor impact on the pair under the current conditions.
