The EUR/USD currency pair continued to fall on Wednesday without any correction after the collapse on Tuesday. We warned you in yesterday's articles that when the market turns to emotional trading, "accelerates", it can move in the same direction for several days in a row without even correcting. Given the fact that the euro's collapse from yesterday was not associated with macroeconomic statistics or "fundamentals", today one could well expect a continuation of the fall in quotes. Today a couple of reports still came at the disposal of traders. The European Union published an index of business activity in the construction sector in the morning, which turned out to be weaker than forecasts, and a little later - a report on retail sales, which also turned out to be lower than forecasts. Thus, traders had a formal basis for new short positions. Just like yesterday, these grounds can hardly be considered real and valid. Remember the last time two business activity indexes led to a collapse? Moreover, both simply declined without going below the "waterline" in the form of a level of 50.0, below which it is believed that a recession is beginning in the sphere! That is, we saw an ordinary decline in business activity, and the euro has updated 20-year lows!
There were very few trading signals on the 5-minute timeframe today. This is because the pair has not been at current price levels for 20 years, so there are no levels here. Yesterday it was possible to form the level of 1.0235, which is Tuesday's low, and today the levels of 1.0277 and 1.0162 have been added to it. However, it is obvious that only the level of 1.0235 could be used in trading, around which the only signal of the day was formed. Sell signal. Naturally, it should have been worked out with a short position, but since there was no target level from below, it was necessary to aim at manually closing the deal from the very beginning. This could be done, as usual, in the late afternoon. On average, about 45 points of profit could be made per trade, which is a very good result.
How to trade on Thursday:
The new downward trend continues on the 30-minute time frame, but there is still no trend line or channel. Like the levels below. Thus, the euro may well continue to fall both on Thursday and Friday, but there are no benchmarks on the 30-minute timeframe right now. Thus, you should use the levels from the lower TF. On the 5-minute TF on Thursday, it is recommended to trade at the levels of 1.0162, 1.0235, 1.0277, 1.0354, 1.0383. When passing 15 points in the right direction, you should set Stop Loss to breakeven. No important events and reports are scheduled in the EU on Thursday. But the US will publish quite an important ADP report on changes in the number of employees in the private sector (similar to NonFarm Payrolls), as well as a report on applications for unemployment benefits. We believe that the first report still has a theoretical chance of being developed, while the second one does not.
