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Forex Traiding

Analytics and trading signals for beginners. How to trade the EUR / USD currency pair on March 1st? Analysis of Friday deals. Training

DATE OF PUBLICATION: 2021-02-28 18: 11: 53 Hourly chart of the EUR / USD pair. The EUR / USD currency pair continued its downward movement on Friday, not paying special attention to technical factors. The collapse of quotations of the European currency at the end of last week is more the growth of the American currency. In our fundamental articles, we have already analyzed this point. Most likely, the strengthening of the dollar was triggered on Thursday by strong macroeconomic statistics from America, and on Friday – by an increase in anti-risk sentiment in the market associated with an attack by American troops in Syria. This point should be well understood by novice traders. If geopolitical tensions arise in the world (for example, they regularly arise in the Middle East), this provokes a decrease in investors’ appetite for risk. Simply put, traders tend to move their assets from risky to non-risky. No one knows what the next military conflict in the Middle East may turn out to be. New terrorist attacks, the threat of a full-scale war, losses on both sides. And despite the fact that the United States is involved in this conflict, the demand for the dollar, as the safest currency, is growing. Of course, no one can say for sure that the rise in the dollar exchange rate was provoked precisely by this. However, we can only analyze information that is publicly available. And on the last two trading days of last week, the factors could only be like that. Thus, newcomers could not work on Friday. We recommended looking for an opportunity to buy the pair, but no buy signals were generated. There was no rebound from either the first trend line or the second. There was an upward reversal of the MACD indicator, but it happened at a time when the MACD indicator went very low and was preparing for uncorrelation with the price (the phenomenon when the price moves in one direction, and the indicator reverses in the other; it happens on strong movements without corrections). Friday, February 26, there was not a single important macroeconomic or fundamental event in the European Union, and in the United States, several secondary reports were published. It is unlikely that such a strong strengthening of the dollar was associated with reports on changes in income levels or spending by Americans. Or the University of Michigan Consumer Sentiment Index. On Monday, both the US and the European Union will publish PMIs for manufacturing sectors, which are not causing any concern at this time. And along with them, and no reaction from traders. Thus, the pair will most likely begin to roll back up on Monday, March 1, the following scenarios are possible: 1) Long positions have lost their relevance at the moment, but the situation is confusing and ambiguous. The pair is likely to rise on Monday, but both trend lines have been crossed. There is no new downtrend line. Thus, in such a situation, we recommend that novice traders wait for the markets to calm down and return to the usual trading mode. 2) Trading downward has become relevant, since both upward trend lines have been overcome. At the same time, the pair has already gone down about 180 points, which now requires an upward rollback. Thus, after the upward correction is performed, it will be possible to track new sell signals from the MACD indicator. Maybe by that time a downtrend line or channel will be formed 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 – 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 crossing 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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