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How to trade EUR/USD on December 29? Simple tips for beginners. An unexpectedly good move in the US session


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Analysis of previous deals:

30M chart of the EUR/USD pair

The EUR/USD pair continued to move inside the horizontal channel on Tuesday, but this should not surprise anyone. Traders now have neither the desire nor the ability to actively move the EUR/USD pair. No macroeconomic reports (at least not important) released on Tuesday. No important messages from the European Union or America either. Thus, even the small surge of activity that occurred in the US session cannot be added to any event. Moreover, it looks “toylike” on the 30-minute TF. Therefore, everything remains the same on the current timeframe. There are no changes and, probably, they could not have been, given the festive status of this week.

5M chart of the EUR/USD pair

On the 5-minute timeframe, very unexpectedly for many, the pair formed two almost perfect trading signals. However, first let’s look at the levels. Basically, only one level is new – 1.1335. This level is Monday’s high and should have been set this morning, since last night it was still unclear exactly where the peak of the day would be. As a result, the euro/dollar pair bounced from this level with an error of 1 point today. And novice traders could work out this sell signal with short positions, the opening of which was fully justified. As a result, the pair dropped to the level of 1.1290, which was previously on the chart, and just bounced off it perfectly, having already formed a buy signal. At this point, it was necessary to close short positions in the profit of 30 points. They could also close at the minimum Take Profit, which is 30 points. The buy signal could also be worked out, as it was quite strong. However, it was formed quite late, so we would not insist on opening long positions at this moment. However, if the newcomers decided to work it out, they could earn another dozen points of profit.

How to trade on Wednesday:

An absolutely horizontal trend persists on the 30-minute timeframe. In other words, a flat. Thus, it is still recommended to trade on this TF for a rebound or breakthrough of its upper or lower limit. These are the levels of 1.1234 and 1.1355. However, now the price is exactly between these levels, and it is unlikely that any of them will work out in the near future. Thus, it is better to trade on a 5-minute timeframe now, where there are a little more levels. We remind novice traders that you can start opening deals with the opening of the European trading session. All the most important levels are plotted on the chart and at this time they are: 1.1262, 1.1290, 1.1335-1.1342 and 1.1355. So far, we do not see a reason for the price to go beyond the horizontal channel. We also remind you that for any transaction, Take Profit of 30-40 points and Stop Loss should be set to breakeven after passing 15 points in the right direction. However, the transaction can also be closed manually, if the situation requires it. For example, if an important report is going to be published or it is nearing evening, then it is preferable to close all transactions and leave the market.

On the chart:

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 the channels or trend lines that display the current trend and show in which direction it is better to trade now.

The MACD indicator (14,22,3) 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 lines (channels and trend lines).

Important speeches and reports (always contained in the news calendar) can greatly influence the movement of a currency pair. Therefore, during their exit, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement.

Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management are 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.

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