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Forex Traiding

Analytics and trading signals for beginners. How to trade the EUR / USD currency pair on February 23? Analysis of Monday deals.

DATE OF PUBLICATION: 2021-02-22 21: 01:35 Hourly chart of the EUR / USD pair. The EUR / USD currency pair on Monday was initially in a downward movement, which began on Friday, and then sharply resumed its upward movement. However, all the couple’s movements look impressive only in the illustration. In fact, the pair passed 70 points during the day. Average volatility value. Nevertheless, breaking the downtrend line again brings us back to the upward trend. As you can see, there was no new round of correction to the uptrend line. And we remind novice traders that now is not the best time to trade. Although the euro / dollar pair is moving more or less clearly, nevertheless, recently two upward trend lines have been canceled. One way or another, breaking the trend line again allows us to expect a round of upward movement. In our last review, we recommended keeping short positions open on Friday, hoping for another 20-30 points downward movement. As a result, since the opening of trading on Monday, the pair has gone down 25 points. Thus, novice traders could earn about 30-40 pips on Friday’s sell signal. We recommended buying the pair near the lower trend line, but the price did not even reach it. Formally, it was also possible to pull off long positions by fixing the price above the downtrend line, but we did not talk about this signal in the last article. If someone opened purchases, they had every right to do so. These trades are now in profit of about 15 pips. On Monday, February 22, the only highlight was the speech of ECB President Christine Lagarde. The head of the central bank said the € 1.85 trillion PEPP program (program to counter the economic consequences of the pandemic) helps support the EU economy. Lagarde did not say anything else of interest, but even this thesis cannot be interpreted as the reason for the strengthening of the euro currency today. Most likely, the reason for the new growth in the euro is connected with technical factors. On Tuesday, the European Union will publish the consumer price index for January, and in the US – the consumer confidence indicator for February. Despite the fact that the report on inflation is considered quite important, we do not expect traders to react to it. One has only to remember that a month earlier, when this indicator rose from -0.3% y / y to 0.9% y / y, traders did not react to it either. Thus, in general, markets continue to ignore macroeconomic statistics. On February 23, the following scenarios are possible: 1) Long positions are now relevant, since we already have two trend lines. However, we recommend that novice traders trade only when accurate and clear buy signals are formed. These can be price rebounds from any trend line or an upward reversal of the MACD indicator after a correction and its discharge to zero. Targets can be resistance levels 1.2147, 1.2176 and 1.2209. Depending on where the signal will be generated. 2) Trading for a fall is currently not relevant. If traders manage to consolidate the pair below the first trend line, then it is recommended to open short positions with targets at the support levels of 1.2085 and 1.2052. However, if the pair goes far up within the next 10-12 hours, then such a signal will not be strong tomorrow. What is on the chart: Price levels of support and resistance are levels that are targets when opening purchases or sales. You can place Take Profit levels near them. Red lines are channels or trend lines that display the current trend and show which direction it is preferable to trade now. Up / down arrows – show when reaching or overcoming which obstacles you should trade for an increase or decrease. MACD (14,22,3) – histogram and signal line, the intersection of which is a signal to enter the market. Recommended for use in conjunction with trend plots (channels, 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 in the Forex market should remember that every trade cannot be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time. Material provided by InstaForex – Source – InstaForex

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