Analysis of Tuesday's Trades:

1H Chart of the EUR/USD Pair

On Tuesday, the EUR/USD currency pair showed no notable movements, and the day's overall volatility was only 30 pips. Thus, there is not much to analyze. There were no significant events or major reports in either the Eurozone or the U.S. throughout the day, and the market quickly moved past the new trade tariffs imposed by Donald Trump. In essence, not much has changed in the global trading architecture since last Friday. Tariffs continue to apply to practically all countries, with the only difference being that there is now a uniform tariff rate of 15% for everyone. Therefore, some have gained, while others have lost from the U.S. Supreme Court's decision. However, the decision itself did not change anything. In our view, there were few reasons for the dollar to rise even in the last two weeks, and now there are even fewer. The market is likely caught up in the potential escalation of the geopolitical conflict in the Middle East, which has supported the American currency. But traders cannot rely on this factor indefinitely.

5M Chart of the EUR/USD Pair

On the 5-minute timeframe, no trading signals were formed on Tuesday. Therefore, throughout the day, beginner traders had no grounds to open any positions. On the hourly timeframe, the pair has exited the descending channel for the second time, so there is still hope for a shift in trend towards the upside.

How to Trade on Wednesday:

On the hourly timeframe, the downward correction has been canceled, as the price has consolidated above the descending channel, but the pair is still not showing any growth. At the beginning of 2026, the long-term upward trend has resumed, so we expect new growth for the euro. The overall fundamental background remains very challenging for the American currency, so we fully support further upward movement.

On Wednesday, beginner traders may consider short positions in case of a bounce from the 1.1830-1.1837 area, targeting 1.1745-1.1754. A price consolidation above the 1.1830-1.1837 area will allow opening long positions with a target of 1.1899-1.1908.

On the 5-minute timeframe, levels to consider are 1.1455-1.1474, 1.1527-1.1531, 1.1550, 1.1584-1.1591, 1.1655-1.1666, 1.1745-1.1754, 1.1830-1.1837, 1.1899-1.1908, 1.1970-1.1988, 1.2044-1.2056, 1.2092-1.2104. On Wednesday, several less significant reports will be published in the Eurozone, including the third estimate of fourth-quarter GDP in Germany, the second estimate of January inflation, and the consumer confidence index in Germany. All three reports have a very low chance of provoking significant movements.

Main Rules of the Trading System:

1. The strength of the signal is determined by the time it takes to form (rebound or breaking through the level). The shorter the time, the stronger the signal.
2. If two or more trades were opened around a particular level based on false signals, all subsequent signals from that level should be ignored.
3. In a flat market, any pair can generate numerous false signals or no signals at all. In any case, it is best to stop trading at the first signs of a flat.
4. Trades are opened during the time period between the start of the European session and until the middle of the American session, after which all trades should be manually closed.
5. On the hourly timeframe, signals from the MACD indicator should ideally be traded only when there is good volatility and a trend confirmed by a trend line or channel.
6. If two levels are too close to each other (ranging from 5 to 20 pips), they should be considered as a support or resistance area.
7. After moving 15 pips in the correct direction, it is advisable to set the Stop Loss to break-even.

What's on the Charts:

• Support and resistance levels are targets for opening buy or sell trades. Take Profit levels can be placed around them.
• Red lines indicate channels or trend lines that reflect the current trend and indicate the preferred direction for trading now.
• The MACD indicator (14,22,3) – the histogram and signal line – serves as a supplementary indicator that can also be used as a source of signals.
• Important speeches and reports (always found in the news calendar) can significantly influence the movement of the currency pair. Therefore, during their release, trading should be conducted with maximum caution, or it is advised to exit the market to avoid a sharp price reversal against the preceding movement.
• Beginners trading in the Forex market should remember that not every trade can be profitable. Developing a clear strategy and practicing sound money management are the keys to long-term trading success.