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Analytics and trading signals for beginners. How to trade the EUR / USD currency pair on January 14? Analysis of transactions of the environment. Preparation

DATE OF PUBLICATION: 2021-01-13 19:44:33 Hourly chart of the EUR / USD pair. The EUR / USD currency pair turned down during Wednesday and began a new round of downward movement. Unfortunately, before that, the quotes of the pair had fixed above the descending channel, which we recommended to use as a buy signal. This buy signal was weak, as at the moment of its formation the MACD indicator was already at its maximum values. However, even if novice traders opened long positions on this signal, it’s okay, since after a couple of hours the MACD indicator turned down, which meant the end of the upward movement. As a result, newcomers had the opportunity to close buy orders with zero profit or with a loss of 1-2 pips, which is not a big deal. At the time of the MACD indicator downward reversal, we can say that a new price peak had already been formed, therefore, in principle, it was possible to rebuild the descending channel and use this peak as a rebound from its upper border. But this is a completely ambiguous signal, so beginners had every reason not to open short positions during the day. At the moment, the euro / dollar pair is in a downward movement, but there are no new sell signals. On Wednesday, January 13, the US inflation report was released, which turned out to be much better than expected. However, at the time of its publication, the EUR / USD pair had already gone down by about 60 points. Thus, it cannot be said that it was the inflation report that provoked the dollar’s growth, although it could have provided it with a little support. The speech of the head of the ECB Christine Lagarde was also ignored, although she was extremely optimistic. But traders either did not believe Lagarde, or thought that she didn’t say anything very important, but around the time of her speech, the European currency began to fall, which continued for the rest of the day. unemployment benefits are a minor report in the current realities. Only a very strong deviation of the real value from the forecast can cause the market to react to this report. In the afternoon, Jerome Powell, the chairman of the Fed, will give a speech, and this is already very interesting. Of course, everything will depend on what Powell says and whether he touches on the issues of economics and monetary policy in general. But you definitely shouldn’t ignore his speech. January 14, the following scenarios are possible: 1) Long positions are still not relevant at the moment, since the downward trend remains in force. Those wishing to buy the EUR / USD pair should wait for the quotes to consolidate above the descending channel. In this case, it will be possible to consider long positions with targets at support levels 1.2232 and 1.2257. 2) Trading for a fall is now more relevant, but a new downward movement has already begun, so now you need to wait for a new sell signal to form. Thus, it is recommended to open new short positions with the targets of support levels 1.2131 and 1.2111 (to be specified in the morning), if a new MACD sell signal is generated, which should be discharged to the zero level before. Also, a rebound from the upper border of a new downtrend channel can be considered as a sell signal. What is on the chart: Support and resistance price levels are the levels that are targets when buying or selling. 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 to 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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