empty
28.01.2025 07:32 AM
How to Trade the EUR/USD Pair on January 28? Simple Tips and Trade Analysis for Beginners

Analysis of Monday's Trades

1H Chart of EUR/USD

This image is no longer relevant

On Monday, the EUR/USD currency pair exhibited mixed movements. Initially, the price dropped before rising again, only to experience a more significant decline later on. These fluctuations occurred without any fundamental or macroeconomic drivers. It's important to note that technical corrections do not necessarily require macroeconomic data releases or major speeches from key policymakers. Currently, the market is influenced by Donald Trump, who consistently generates a stream of news. However, predicting how the market reacts to these developments is challenging, even in hindsight, as Trump can make two contradictory decisions within a single day. Therefore, it doesn't make much sense to base forecasts solely on fundamentals at this time. The focus should remain on the ongoing correction and technical analysis.

The correction is indicated by the ascending trendline. With the FOMC meeting scheduled for tomorrow, a trend reversal is possible. Additionally, the ECB meeting on Thursday will be crucial.

5M Chart of EUR/USD

This image is no longer relevant

On the 5-minute timeframe, Monday featured the formation of two nearly perfect trading signals. During the European session, the price rebounded from the 1.0451 level with minimal deviation and subsequently rose to 1.0526. A reversal occurred at this level as well, and the price eventually returned to the 1.0433-1.0451 range overnight. Novice traders could have secured a profit of 80-100 pips from just these two trades.

Trading Strategy for Tuesday:

On the hourly timeframe, the EUR/USD pair is currently in a medium-term downtrend, although there is a local upward correction underway. A decline in the euro is still anticipated, as the fundamental and macroeconomic conditions continue to support the US dollar. Nevertheless, we should wait for the completion of this upward correction, which will be confirmed if the price breaks below the trendline.

On Tuesday, the pair's decline may resume since the price has risen sufficiently without a downward correction. However, today's movements will likely hinge solely on technical factors.

On the 5-minute timeframe, the following levels should be noted: 1.0156, 1.0221, 1.0269-1.0277, 1.0334-1.0359, 1.0433-1.0451, 1.0526, 1.0596, 1.0678, 1.0726-1.0733, 1.0797-1.0804, 1.0845-1.0851. For Tuesday, important events to watch include the U.S. Durable Goods Orders report, which is relatively significant, and a speech by Christine Lagarde; however, it is unlikely that her remarks will provide any major surprises for the market.

Core Trading System Rules:

  1. Signal Strength: The shorter the time it takes for a signal to form (a rebound or breakout), the stronger the signal.
  2. False Signals: If two or more trades near a level result in false signals, subsequent signals from that level should be ignored.
  3. Flat Markets: In flat conditions, pairs may generate many false signals or none at all. It's better to stop trading at the first signs of a flat market.
  4. Trading Hours: Open trades between the start of the European session and the middle of the US session, then manually close all trades.
  5. MACD Signals: On the hourly timeframe, trade MACD signals only during periods of good volatility and a clear trend confirmed by trendlines or trend channels.
  6. Close Levels: If two levels are too close (5–20 pips apart), treat them as a support or resistance zone.
  7. Stop Loss: Set a Stop Loss to breakeven after the price moves 15 pips in the desired direction.

Key Chart Elements:

Support and Resistance Levels: These are target levels for opening or closing positions and can also serve as points for placing Take Profit orders.

Red Lines: Channels or trendlines indicating the current trend and the preferred direction for trading.

MACD Indicator (14,22,3): A histogram and signal line used as a supplementary source of trading signals.

Important Events and Reports: Found in the economic calendar, these can heavily influence price movements. Exercise caution or exit the market during their release to avoid sharp reversals.

Forex trading beginners should remember that not every trade will be profitable. Developing a clear strategy and practicing proper money management are essential for long-term trading success.

Paolo Greco,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/USD: Trading Plan for the U.S. Session on February 13th (Analysis of Morning Trades)

In my morning forecast, I focused on the 1.2505 level and planned to make trading decisions based on it. Let's examine the 5-minute chart to see what happened. A rise

Miroslaw Bawulski 12:37 2025-02-13 UTC+2

EUR/USD: Trading Plan for the U.S. Session on February 13th (Analysis of Morning Trades)

In my morning forecast, I focused on the 1.0440 level and planned to make trading decisions based on it. Let's examine the 5-minute chart to see what happened. A rise

Miroslaw Bawulski 12:30 2025-02-13 UTC+2

How to Trade the EUR/USD Pair on February 13? Simple Tips and Trade Analysis for Beginners

Analysis of Wednesday's Trades 1H Chart of EUR/USD The EUR/USD currency pair experienced significant growth on Tuesday, with the upward trend continuing overnight. What caused the euro to rise

Paolo Greco 06:41 2025-02-13 UTC+2

How to Trade the GBP/USD Pair on February 13? Simple Tips and Trade Analysis for Beginners

Analysis of Wednesday's Trades 1H Chart of GBP/USD The GBP/USD pair traded higher on Wednesday, despite no reason for it. The market's reaction to the day's only significant report—U.S. inflation

Paolo Greco 06:41 2025-02-13 UTC+2

Trading Recommendations and Analysis for EUR/USD on February 13: U.S. Inflation Growth Triggered... a Decline in the Dollar

The EUR/USD currency pair experienced significant price fluctuations on Wednesday, following a notable downward trend. The only major event that contributed to this volatility was the release of the U.S

Paolo Greco 03:39 2025-02-13 UTC+2

Trading Recommendations and Analysis for GBP/USD on February 13: The Pound Plunges into Total Chaos

The GBP/USD currency pair experienced significant volatility on Wednesday, similar to that of the EUR/USD pair. Looking at the hourly chart, the numerous price swings can be overwhelming. The market

Paolo Greco 02:06 2025-02-13 UTC+2

GBP/USD: Trading Plan for the U.S. Session on February 12th (Review of Morning Trades)

In my morning forecast, I highlighted the 1.2462 level as a key point for making trading decisions. Looking at the 5-minute chart, the rise and subsequent false breakout around 1.2462

Miroslaw Bawulski 14:15 2025-02-12 UTC+2

EUR/USD: Trading Plan for the U.S. Session on February 12th (Review of Morning Trades)

In my morning forecast, I highlighted the 1.0379 level as a key point for making trading decisions. Looking at the 5-minute chart, the rise and subsequent false breakout around 1.0379

Miroslaw Bawulski 14:12 2025-02-12 UTC+2

How to Trade the GBP/USD Pair on February 12? Simple Tips and Trade Analysis for Beginners

Analysis of Tuesday's Trades 1H Chart of GBP/USD The GBP/USD pair also traded higher on Tuesday, although there was no clear reason for it. However, who really looks for reasons

Paolo Greco 08:44 2025-02-12 UTC+2

How to Trade the EUR/USD Pair on February 12? Simple Tips and Trade Analysis for Beginners

Analysis of Tuesday's Trades 1H Chart of EUR/USD On Monday, the EUR/USD pair began a new upward movement, despite the absence of local fundamental reasons. The only scheduled event

Paolo Greco 08:44 2025-02-12 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.