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Analytics and trading signals for beginners. How to trade the EUR / USD currency pair on January 20th? Analysis of Tuesday’s deals. Preparation



DATE OF PUBLICATION: 2021-01-19 20: 06: 14Hourly chart of the EUR / USD pair. The EUR / USD currency pair continued its upward movement during Tuesday, which began the day before. And at the end of the day, it managed to overcome the upper border of the descending channel. Thus, the downtrend was canceled, and the uptrend was formed. Consequently, bull trading should now be considered again. Novice traders had reason to open buy orders today when quotes have consolidated above the channel. However, as we warned in the last articles, after the pair moved up about 50 points, it could not show a strong upward movement. Thus, it went up another 30 pips and the movement began to dry out. The MACD indicator may turn down already at the current candlestick, which will mean a signal to close long positions. After that, it will be necessary to wait again for the indicator to discharge to the zero level and form a new buy signal. But with sales, novice traders will now have to wait. Perhaps even a few days. Sell ​​orders now need the current uptrend to reverse unequivocally. On Tuesday, January 19, there was no major report published in Europe or America, no major news. The euro rose that day, but it cannot be concluded that this rise was based on any fundamental events. In the States, everything is ready for a change of president. Tomorrow is Joe Biden’s Inauguration Day. We were worried that the markets might get nervous about this, but nothing like that! Trades take place in an exceptionally calm atmosphere. As we said above, there is no reason to assume the influence of the fundamental background on the movement of the pair. Therefore, you should continue to trade exclusively on technical signals. Wednesday, January 20, apart from the inflation report in the European Union for December and the inauguration of Joe Biden, there will be nothing to pay attention to novice traders. However, no changes are expected in the consumer price index. And the inauguration is a very formal process. If Donald Trump again does not urge his supporters to “go to the Capitol” (which certainly does not make any sense), then the whole procedure will be quiet and calm. What will happen next, now makes no sense at all. So far, the US dollar has lost 5 cents since the name of the country’s new president became known. It can be concluded that the American currency no longer likes Joe Biden. If so, we can expect a long-term decline in the dollar. But this does not mean that the dollar will fall in price for the next four years. January 20, the following scenarios are possible: 1) Long positions have become expedient due to the price fixing above the descending channel. However, all resistance levels have already been overcome for today, and the MACD indicator is about to turn down. Thus, we recommend waiting for a downward correction now, after which a new buy signal is formed. This will not happen until tomorrow morning, and maybe later. Therefore, we will take tomorrow’s targets. 2) Trading for a fall is canceled. Now, to resume trading down, the price needs to make it clear that the downtrend has been resumed. To do this, an ascending channel or a trend line must be formed and therefore canceled. Or, for the price to go below the current local minimum of 1.2055. Nothing of the sort is expected until tomorrow morning at least. What’s on the chart: Support and resistance price levels are the levels that are the 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 – www.instaforex.com Source – InstaForex

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