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Forex Traiding

Analytics and trading signals for beginners. How to trade the EUR / USD currency pair on February 24? Analysis of Tuesday’s deals. Training

DATE OF PUBLICATION: 2021-02-23 20:40:56 Hourly chart of the EUR / USD pair. The EUR / USD currency pair spent most of the day in a downward correction on Tuesday. The correction turned out not strong, however, it allowed the MACD indicator to discharge to the zero level. Thus, now, in the next few hours, this indicator can form a new buy signal, turning up. The upward trend remains unquestionable. Two trend lines at once support bull traders. In addition to the standard buy signal from the MACD indicator, a signal in the form of a price rebound from the trend line (the closest, of course) can also be formed. However, we remind novice traders that the signal must be strong and accurate. If the pair trades for some time directly “on” the trend line, then neither rebound nor overcoming will work. In our last review, we recommended buying the pair if a new buy signal is generated. During today, this has not been formed, therefore, beginners following our recommendations should not have opened purchases today. It was recommended to sell the pair not earlier than breaking the first trend line, which also did not happen during the day. Tuesday’s volatility is only 45 pips, which is low. Not surprisingly, not a single signal was generated today. On Tuesday, February 23, the only macroeconomic report of the day was the EU inflation report for January. However, firstly, its actual value did not differ from the forecast and the previous one, and secondly, it was ignored in any case. However, this is perfectly noticeable based on today’s volatility. If there was a reaction to this report, the pair would not have gone 45 points in a day. There was also no reaction to Jerome Powell’s speech in the US Congress. As we expected, the Fed chairman did not report anything extra-important either to Congress or to the markets. Wednesday in the European Union, the calendar of macroeconomic events is empty, and in the United States – Jerome Powell’s second speech in Congress. Usually, the two speeches (Powell speaks to Congress twice a year in front of different committees on monetary policy) are no different. Accordingly, if the markets ignored it today, they will ignore it tomorrow. Thus, the macroeconomic background will be extremely weak tomorrow, but this does not mean that trading will be unambiguously sluggish. On February 24, the following scenarios are possible: 1) Long positions now remain relevant, as traders already have two uptrend lines at their disposal. In the next few hours, a buy signal from the MACD indicator with targets at the resistance levels of 1.2188 and 1.2219 may form. Also, the price rebound from the trend line can be considered as a buy signal, the goals are the same. 2) Trading for a fall is currently not relevant, since the price continues to be above the trend lines. If traders manage to consolidate the pair below the first trend line, then novice traders are advised to open short positions with the targets of support levels 1.2109 and, in fact, the trend line. What is on the chart: Price levels of support and resistance – 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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