Analytics and trading signals for beginners. How to trade EUR/USD on June 16. Analysis of Tuesday. Getting ready for Wednesday

Analysis of previous deals:

30M chart of the EUR/USD pair


The EUR/USD pair was not trading very actively on Tuesday. The pair is still inside the downward trend channel, which is very weak. Weak in the sense that its angle of inclination makes it possible to interpret the current movement as a weak downward trend and almost flat. Thus, we cannot conclude that there is a trend movement for the pair. This means that signals from the MACD indicator should still be ignored and expected when a real trend will form in the pair. No important report from the European Union, while a retail sales report was published in America. However, this report turned out to be significantly weaker than forecasts, therefore, it did not provide support to the US dollar. The downward movement, which began in the European trading session, was replaced by an upward pullback in the US one. Overall, the dollar has excellent chances of a resumption of the upward trend.

5M chart of the EUR/USD pair


The technical picture is almost perfect on the 5-minute timeframe. During the day, only two trading signals were formed, and both are perfect in accuracy. Let's break them down. At first, the price reached the level of 1.2143 and bounced off it. Yes, for a while, traders clearly did not know what to do near this level, but then a downward movement began, which, of course, should be worked out with a short position. After the formation of this signal, the quotes went down 33 points and worked out the level of 1.2104. Therefore, the short position could be closed both at Take Profit and at the level of 1.2104. In any case, novice traders would earn about 30 points on it.

This was followed by an even more accurate rebound, but from the level of 1.2104, which also had to be worked out, but already with a long position. As a result, the price went up about 15 more points. At the moment, this trade can be closed manually, since the trading day is almost over. Also in the illustration, a tick marks the time when the retail sales report was published in America. Usually, we do not recommend opening trades during the publication of important data, but in this case, the signal was very strong and accurate, plus it became clear that the US dollar will not receive support from the retail trade data,which means that it should fall. Therefore, it was necessary to open a long position. In total, beginners could earn 45-50 points today, which is an excellent result, given the overall volatility of the day at 46.

Trading tips for Wednesday:

The pair is in a very weak descending channel on the 30-minute timeframe, and there is no sign of a trend right now. Therefore, we still do not recommend novice traders to track any signals from the MACD indicator on the 30-minute timeframe. It is better to wait for the resumption of the trend movement and trade consciously, and not at random. On the 5-minute timeframe, it is recommended to trade from the levels of 1.2092, 1.2104, 1.2143 and 1.2159. Take Profit, as before, is set at a distance of 30-40 points. Stop Loss-to break even when the price passes in the right direction 15-20 points. At 5M TF, the target can be the nearest level, as long as it is not too close or too far away. If it is located, then you should act on the situation. On Wednesday, the European Union is not scheduled for any important events, but in the United States in the evening, the results of the Fed meeting will be summed up. This event will take place really late in the evening, so before it, traders have a whole day to trade calmly. However, we warn that often on the days of the publication of the results of the central bank meeting, strong movements can be observed even before the results are announced.

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.

Up/down arrows show where you should sell or buy after reaching or breaking through particular levels.

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 announcements and economic reports that you can always find in the news calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommended trading as carefully as possible or exit the market in order to avoid a sharp price reversal.

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 material has been provided by InstaForex Company -