The EUR/USD pair continued its downward movement on Wednesday that started a few days ago. At the end of the day, the pair went below the ascending channel, so the uptrend has been canceled at this point. In this regard, on September 8, a breakout below the lower line of the channel could be regarded as a sell signal. So, a short position at around 1.1836 could have been opened following this signal. Subsequently, the price dropped to the level of 1.1802, so novice traders could close the deal with a minimum Take Profit of 30 pips. The second signal, this time a signal to buy, appeared when the price rebounded from the level of 1.1802. This signal was also formed on the 5-minute time frame but a little bit faster. So, we will discuss it below. In general, there were no economic reports that could influence the euro/dollar pair today. Volatility was low within the range of just 50 pips.
On the 5-minute time frame, the situation looked more interesting today. A number of good signals have been formed during the day, and we could use them to our benefit. First, the price bounced off the level of 1.1831, and this was a buy signal. This signal turned out to be false, since the price went up by only a few pips after its formation, and then it consolidated below the level of 1.1831. Therefore, a buy positon should have been closed manually with a loss of about 11 pips. The second signal was good for placing a sell trade. The price could not immediately reach the closest level of 1.1802 and returned to the level of 1.1831 during the day. However, beginners couldn't set a Stop Loss in this case since the price failed to move by 15 pips as the signal had been formed. But in the end, the quotes fell to the level of 1.1802 which allowed newcomers to earn about 11 pips. A buy signal from the level of 1.1802 is the same signal that appeared on the 30-minute time frame. It should have been used for opening a buy trade which should have been closed around the level of 1.1831. Actually, by that time, all positions should have been closed and traders had to exit the market (a profit of about 14 pips was possible). Thus, on both time frames, beginners could earn around 44 pips which is just fine, given low volatility today.
Trading tips on Thursday
On the 30-minute time frame, the EUR/USD pair left the ascending channel and developed a downtrend. However, the movements are still very weak, so we do not recommend following the MACD indicator for signals. On the 5-minute time frame, it is better to trade from the levels of 1.1730, 1.1802, 1.1831, 1.1851, and 1.1880. As usual, Take Profit should be set at a distance of 30-40 pips. Stop Loss should be moved to the breakeven point as soon the price passes 15 pips in the right direction. On the 5-minute time frame, the target can be the nearest level unless it is located too close or too far away. If it is, then you should act according to the situation. On Thursday, the European Union will announce the results of the ECB meeting. Even if does not bring any important news, it is still a major event that could move the markets. Therefore, at this time, beginners are advised to be extremely careful. Meanwhile, no key economic events are expected tomorrow in the US.
