Actor, UFC 6 tournament champion and a true hero!
The man who made himself. The man that goes our way.
The secret behind Taktarov's success is constant movement towards the goal.
Reveal all the sides of your talent!
Discover, try, fail - but never stop!
InstaSpot. Your success story starts here!
On Tuesday, EUR/USD continued to trade indistinctly. Most of the movement looked like a flat. If you look at the last two weeks, the movement also looks more sideways. Therefore, we can say that 70-80% of the time we are dealing with a flat. And this is a flat, which is at the highs. The euro could not correct after rising from last year's lows, and there are still many questions about how reasonable the growth is during the last months. The EU released some PMI reports. They were published in the morning but there was almost no reaction to them. The volatility of the day is 60 points, which is not much. The same goes for the US PMIs, which were better than the forecasts, but instead of rising the dollar was declining after they were released. Anyway, the market ignored all six reports. And at the same time, the next speech of European Central Bank President Christine Lagarde.
You can clearly see the nature of the pair's movement on the 5-minute chart. The price was moving around 1.0867 almost all through the day, overcoming it 5-6 times in both directions. Formally, each breakthrough is a signal, but we see that in most cases, the pair failed to go even 10 pips in the right direction. In general, beginners could try to test any two signals and most likely they made small losses at both of them. It was a bad day, but do remember that it's impossible to make a profit all the time on the market. There are false signals and there are unsuccessful trades and days.
The pair maintains the uptrend on the 30-minute chart, despite crossing the trend line. Nevertheless, if we evaluate the movements during the last 2 weeks, this one seems more like a flat. Therefore, we should be prepared for a proper movement on any given day. This week there will not be many important events, which is an excellent environment for a flat. On the 5-minute chart, it is recommended to trade at the levels 1.0657-1.0668, 1.0697, 1.0736, 1.0768, 1.0806, 1.0867, 1.0920-1.0923-1.0933, 1.0966, 1.0989. On Wednesday, neither the US nor the EU have any important events scheduled. Thus, the flat may persist/continue.
1) The strength of the signal is determined by the time it took the signal to form (a rebound or a breakout of the level). The quicker it is formed, the stronger the signal is.
2) If two or more positions were opened near a certain level based on a false signal (which did not trigger a Take Profit or test the nearest target level), then all subsequent signals at this level should be ignored.
3) When trading flat, a pair can form multiple false signals or not form them at all. In any case, it is better to stop trading at the first sign of a flat movement.
4) Trades should be opened in the period between the start of the European session and the middle of the US trading hours when all positions must be closed manually.
5) You can trade using signals from the MACD indicator on the 30-minute time frame only amid strong volatility and a clear trend that should be confirmed by a trendline or a trend channel.
6) If two levels are located too close to each other (from 5 to 15 pips), they should be considered support and resistance levels.
Support and Resistance levels are the levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.
Red lines are channels or trend lines that display the current trend and show in which direction it is better to trade now.
The MACD indicator (14, 22, and 3) consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend patterns (channels and trendlines).
Important announcements and economic reports that can be found on the economic calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommend trading as carefully as possible or exiting the market in order to avoid sharp price fluctuations.
Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management is the key to success in trading over a long period of time.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
InstaSpot analytical reviews will make you fully aware of market trends! Being an InstaSpot client, you are provided with a large number of free services for efficient trading.