EUR/USD on 1H chart
EUR/USD exhibited its weakest upward movement. Over the past four days, the pair has been trading higher and managed to strengthen by... 60 pips. This is all you need to know about the euro's volatility at the moment. The final value of the German Consumer Price Index for January was published. This report did not evoke any emotions from the market since second estimates are always less important than the first ones.
In the second half of the day, the US inflation report for December was unexpectedly published. Initially, this report was not on the calendar, but the monthly value did not differ from the forecast. The market reacted to this report by selling the dollar, which caused it to drop by a whole 18 pips. The overall volatility of the day was 33 pips...
EUR/USD on 5M chart
It doesn't make sense to identify the trading signals on the 5-minute timeframe. The price moved sideways throughout the day, and with low volatility. Formally, at the beginning of the US trading session, the euro consolidated above the level of 1.0781, so beginners could open long positions. However, there was no profit or loss on them. After consolidating above the range of 1.0767-1.0781, the price continued to move sideways.
Trading tips on Monday:
On the hourly chart, the downtrend remains intact, but it is quite clear that the market is not interested in selling the EUR/USD pair every day. We will likely see slow and weak movement. However, we still expect the euro to show a pronounced decline, as the fundamental and macroeconomic background cannot support it at the moment.
The key levels on the 5M chart are 1.0568, 1.0611-1.0618, 1.0668, 1.0725, 1.0767-1.0781, 1.0835, 1.0896-1.0904, 1.0940, 1.0971-1.0981, 1.1011, 1.1043, 1.1091. On Monday, there are no important events scheduled either in the European Union or in the United States. We expect the currency pair to show weak movement. It doesn't matter which way the pair moves, as 20-30 pips have no impact on the overall technical picture. And it's unlikely for us to make a profit on them.
Basic trading rules:
1) Signal strength is determined by the time taken for its formation (either a bounce or level breach). A shorter formation time indicates a stronger signal.
2) If two or more trades around a certain level are initiated based on false signals, subsequent signals from that level should be disregarded.
3) In a flat market, any currency pair can produce multiple false signals or none at all. In any case, the flat trend is not the best condition for trading.
4) Trading activities are confined between the onset of the European session and mid-way through the U.S. session, after which all open trades should be manually closed.
5) On the 30-minute timeframe, trades based on MACD signals are only advisable amidst substantial volatility and an established trend, confirmed either by a trendline or trend channel.
6) If two levels lie closely together (ranging from 5 to 15 pips apart), they should be considered as a support or resistance zone.
How to read charts:
Support and Resistance price levels can serve as targets when buying or selling. You can place Take Profit levels near them.
Red lines represent channels or trend lines, depicting the current market trend and indicating the preferable trading direction.
The MACD(14,22,3) indicator, encompassing both the histogram and signal line, acts as an auxiliary tool and can also be used as a signal source.
Significant speeches and reports (always noted in the news calendar) can profoundly influence the price dynamics. Hence, trading during their release calls for heightened caution. It may be reasonable to exit the market to prevent abrupt price reversals against the prevailing trend.
Beginning traders should always remember that not every trade will yield profit. Establishing a clear strategy coupled with sound money management is the cornerstone of sustained trading success.Pentru mai multe detalii, va invitam sa vizitati stirea originala.
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