FX.co ★ Analytics and trading signals for beginners. How to trade EUR/USD on May 19? Analysis of Tuesday. Getting ready for Wednesday

Analysis of previous deals:

30M chart of the EUR/USD pair

The EUR/USD pair was trading quite calmly on Tuesday, but volatility increased as compared to the previous day. From the low to the high of the day, the pair passed more than 80 points. The upward movement continues as the upward trend persists and the price does not even try to get closer to the upward trend line. During the past day, the pair confidently overcame the level of 1.2174, which made it possible to sustain the upward movement. However, we will analyze this buy signal on the 5-minute timeframe, since it formed earlier there. As for the signals from the MACD indicator, there wasn't any that was worthy of attention. The indicator did not approach the zero level, as there was no correction for the EUR/USD pair that night. Therefore, this indicator did not provide you with the necessary entry points.

5M chart of the EUR/USD pair

Now let's take a look at the 5 minute timeframe. Here the picture, unlike the usual one, is just as simple. There was only one buy signal during the day - a breakthrough of 1.2174. Long positions should be opened on this signal. After its formation, the pair went up more than 50 points, which enabled beginners to make a profit of 30-40 points, according to our recommendations on Take Profit levels. And so, the only signal of the day was profitable. The 1.2234 level was plotted on the chart today, so it did not participate in today's trade - this is today's high. As for the macroeconomic reports, it was not in favor of the European currency, and in general we are talking about one report - the GDP of the European Union for the first quarter. In principle, market participants were familiarized with its significance, since this is already the second published estimate of GDP, therefore, there was no reaction. This report came out much later than the formation of our buy signal, so it had no effect on the deal. Succeeding trades in the US trading session were already downward, but no new signals were generated. After lunch, there was also a speech by European Central Bank President Christine Lagarde, but it also did not provoke any market reaction, and it did not affect the trading in any way.

Trading tips for Wednesday:

The upward trend on the 30-minute timeframe is still maintained for novice traders, therefore you should continue to consider long positions. To do this, the MACD indicator needs to be discharged to the zero level, that is, again, a correction is required. It is recommended to trade from the levels 1.2169, 1.2174, 1.2234 and 1.2242 on the 5-minute timeframe. Take Profit, as before, is set at a distance of 30-40 points. Stop Loss - to breakeven when the price passes 15–20 points in the right direction. The target at the 5M TF can be the nearest level if it is not too close or too far away. You need to look at the volatility of the pair. If located - then you should act according to the situation. The European Union is set to publish a rather important report on inflation for April. However, this is the so-called final value, and a preliminary one has already been published. Usually, the preliminary value practically does not differ from the final one, thus, the markets are already ready for the acceleration of inflation from 1.3% to 1.6%. In theory, the markets could react to this report, but unlikely, unless there is a major discrepancy between the forecast and the actual value. In the US, the minutes of the last Federal Reserve meeting will be published in the evening, but by that time the newcomers will have to leave the market.

On the chart:

Support and Resistance Levels are the Levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.

Red lines are the channels or trend lines that display the current trend and show in which direction it is better to trade now.

Up/down arrows show where you should sell or buy after reaching or breaking through particular levels.

The MACD indicator (14,22,3) consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend lines (channels and trend lines).

Important announcements and economic reports that you can always find in the news calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommended trading as carefully as possible or exit the market in order to avoid a sharp price reversal.

Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time.