empty
30.01.2025 07:49 AM
How to Trade the EUR/USD Pair on January 30? Simple Tips and Trade Analysis for Beginners

Analysis of Wednesday's Trades

1H Chart of EUR/USD

This image is no longer relevant

On Wednesday, the EUR/USD currency pair did not exhibit the expected movements. Volatility remained low throughout the day, and following the FOMC meeting, there was little change in the market. Prior to the FOMC decision, no significant or even secondary economic reports were released from either the Eurozone or the U.S., leaving traders with minimal information to react to. From our perspective, the U.S. dollar should have strengthened after Powell's speech, in which he reaffirmed the Federal Reserve's independence from former President Donald Trump. Essentially, the Fed chair made it clear that the central bank will not bow to political pressure regarding monetary policy easing. However, the market interpreted this information as expected, leading to a lack of reaction. Despite this, the currency pair has settled below the trendline, and the outcomes of the FOMC meeting can be viewed as moderately hawkish. Therefore, we anticipate further strengthening of the U.S. dollar in the near term.

5M Chart of EUR/USD

This image is no longer relevant

On the 5-minute timeframe on Wednesday, only one trading signal was generated, and the price movements throughout the day were rather lackluster. During the European trading session, the price rebounded from the 1.0433-1.0451 range and moved approximately 30 pips downward. However, just before the FOMC decision, the pair returned to its original position, making it unlikely that traders could have gained significant profits from this movement. No additional trading signals were generated.

Trading Strategy for Thursday:

On the hourly timeframe, the EUR/USD currency pair is currently in a medium-term downtrend. The local uptrend observed yesterday has now reversed. We expect further declines for the euro, as both fundamental and macroeconomic conditions continue to favor the U.S. dollar. We anticipate a new wave of appreciation for the USD in the near term.

On Thursday, we can anticipate a potential decline in the pair if the price remains below the 1.0433-1.0451 range. However, it's important to keep in mind that today is the ECB meeting, which could lead to an emotional reaction in the market.

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, and 1.0845-1.0851. On Thursday, the EU will announce the results of the ECB meeting, and GDP reports will be published for Germany, the EU, and the US. With such a wealth of data, significant market movements can be expected.

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 speeches and reports, which are consistently featured in the news calendar, can significantly influence the movement of a currency pair. Therefore, during their release, it is advisable to trade with caution or consider exiting the market to avoid potential sharp price reversals against the prior trend.

Beginners in the Forex market should understand that not every transaction will be profitable. Developing a clear trading strategy and practicing effective money management are crucial for achieving long-term success in trading.

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 28th (Analysis of Morning Trades)

In my morning forecast, I focused on the 1.2607 level as a key decision point for entering the market. Looking at the 5-minute chart, the price moved higher but fell

Miroslaw Bawulski 11:50 2025-02-28 UTC+2

EUR/USD: Trading Plan for the U.S. Session on February 28th (Analysis of Morning Trades)

In my morning forecast, I focused on the 1.0404 level as a key decision point for entering the market. Looking at the 5-minute chart, we see that the price rise

Miroslaw Bawulski 11:46 2025-02-28 UTC+2

How to Trade the GBP/USD Pair on February 28? Simple Tips and Trade Analysis for Beginners

Analysis of Thursday's Trades 1H Chart of GBP/USD The GBP/USD pair declined on Thursday, despite having fewer reasons for this movement. Trump's tariffs against the EU do not directly affect

Paolo Greco 06:30 2025-02-28 UTC+2

How to Trade the EUR/USD Pair on February 28? Simple Tips and Trade Analysis for Beginners

Analysis of Thursday's Trades 1H Chart of EUR/USD On Thursday, the EUR/USD currency pair initially consolidated below the ascending trendline before starting to decline, as anticipated. Several factors contributed

Paolo Greco 06:30 2025-02-28 UTC+2

Trading Recommendations and Analysis for GBP/USD on February 28: The Pound is Also Preparing to Decline

The GBP/USD pair also declined on Thursday, although its volatility was lower than that of the EUR/USD, resulting in a more modest drop. The price struggled initially but eventually broke

Paolo Greco 02:49 2025-02-28 UTC+2

Trading Recommendations and Analysis for EUR/USD on February 28: The Euro Waited for the Right Moment and Plunged

The EUR/USD currency pair experienced a significant drop on Thursday. For over a week, the price had been hovering near the upper boundary of a sideways channel on the daily

Paolo Greco 02:49 2025-02-28 UTC+2

GBP/USD: Trading Plan for the US Session on February 27th (Review of Morning Trades)

In my morning forecast, I highlighted the 1.2680 level as a key reference point for entering the market. Looking at the 5-minute chart, the upward movement occurred, but the price

Miroslaw Bawulski 15:11 2025-02-27 UTC+2

EUR/USD: Trading Plan for the U.S. Session on February 27th (Review of Morning Trades)

In my morning forecast, I highlighted the 1.0491 level as a key area for market entry decisions. A review of the 5-minute chart shows that although there was an upward

Miroslaw Bawulski 14:50 2025-02-27 UTC+2

How to Trade the GBP/USD Pair on February 27? Simple Tips and Trade Analysis for Beginners

Analysis of Wednesday's Trades 1H Chart of GBP/USD On Wednesday, GBP/USD attempted to continue its upward movement, but this trend is starting to look questionable. Previously, we noted that

Paolo Greco 06:32 2025-02-27 UTC+2

How to Trade the EUR/USD Pair on February 27? Simple Tips and Trade Analysis for Beginners

Analysis of Wednesday's Trades 1H Chart of EUR/USD The EUR/USD currency pair traded flat on Wednesday, breaking the ascending trend line. However, it is important to note that a trendline

Paolo Greco 06:32 2025-02-27 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.