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Forex Traiding

Analytics and trading signals for beginners. How to trade the EUR / USD currency pair on January 18? Analysis of Friday deals. Preparation

DATE OF PUBLICATION: 2021-01-17 15: 51: 52Hourly chart of the EUR / USD pair. The EUR / USD currency pair turned down during Friday, even at night, and resumed the downward movement, according to the formed trend, which is supported by the downward channel. Thus, novice traders could open short positions that day. A sell signal from the MACD indicator was formed early in the morning, which is very convenient – novice traders could have time to enter the market in time or enter it only with a slight delay. The indicator was pre-discharged to almost zero level, so the sell signal was considered strong. As a result, the euro / dollar pair was in a recoilless upward movement all day and no upward signal was formed. Thus, newcomers could not even close sell orders or close them just before the close of the market on Friday. This would bring them about 70 pips of profit, which is an excellent result. Thus, at the moment, the downtrend continues, the MACD indicator will turn upward in almost any case in the coming hours, since it has nowhere to go further, and traders are advised to wait now for a new sell signal from the MACD to form. Not a single important report was published in Europe, so all the attention was turned back to America. In addition to all the political upheavals, the US also released reports on retail sales and industrial production. If the first indicator turned out to be significantly worse than forecasts (-0.7% m / m), then the second one turned out to be better than forecasts (+ 1.6% m / m). In general, the package of economic statistics can be considered neutral. Again, the market response does not match the nature of the macroeconomic data. From this we again conclude that there was no reaction. The markets simply ignored the statistics again. And the markets are not interested in politics at all. Donald Trump is leaving office after three days and whether he will be impeached or not is not so interesting anymore. This figure will no longer have any influence on the economy and politics of the United States. Christine Lagarde, President of the European Central Bank, is scheduled to speak again in the European Union on Monday, January 18. Recall that Lagarde’s first performance in 2021 did not give the markets any new information, although in general, each of her performances is an important event. Thus, Lagarde can potentially tell the markets something new and interesting regarding monetary policy. But are the markets ready to process this information? On January 18, the following scenarios are possible: 1) Long positions are still not relevant at the moment, as the downtrend remains in force. Those wishing to buy the EUR / USD pair should wait until the quotes fix above the descending channel. In this case, it will be possible to consider long positions with targets at the support levels of 1.2184 and 1.2216 (targets will be specified tomorrow morning). 2) Trading for a fall is more relevant now, so you need to wait for a new sell signal to form. It is recommended to open new short positions with targets at the support levels 1.2080 and 1.2048 (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 – levels that are targets when buying or selling. You can place Take Profit levels around them. Red lines – 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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