How to trade EUR/USD on April 24. Simple trading tips and analysis for beginners
April 24, 2023 8:23 am
Analyzing Friday’s trades:
EUR/USD on 30M chart
On Friday, the EUR/USD pair once again demonstrated weak movements and there was no trend. In principle, such a picture was observed almost from the very beginning of the week. The fundamental and macroeconomic backgrounds were weak, and even on days when they strengthened, the situation didn’t change much. The market has been buying the euro for no reason for a month, and now it has simply stopped being active in the market. Even on days when there are reasons for it to be actively traded. Therefore, it is still difficult to understand the logic of most market participants. All we can do is to take note of the groundless growth that has been replaced by a flat, which is even worse. If growth is, in any case, a movement that can be worked out on lower charts at least, then a flat is bad in any case. PMIs in the services and manufacturing sectors of the United States and the European Union were published. European PMIs were ignored, while American ones were assessed. However, the response was weak and had no impact on the flat.
EUR/USD on 5M chart
On the 5-minute chart, we could see how the pair moved during the last trading day of the previous week. It may seem that the movements were even quite strong, but the overall volatility of the day was only 55 points. Therefore, those rare bursts that we could see were still 30-35 points within the full flat. It was very difficult to work them out, and it didn’t make much sense. The only sell signal was formed near the area of 1.0980-1.1000 at the beginning of the US trading session. At that time, PMIs were released in the United States, and the dollar received support of 40 points. However, within the next few hours, the pair returned to its original positions, and the sell signal did not bring any profit to beginners – the price did not reach the target level. But the price still passed 15 points in the right direction, so beginners should have set a break-even stop loss. Accordingly, there was no loss either.
Trading tips on Monday:
On the 30-minute chart, the pair has been in a flat for several days. Unfortunately, the current situation does not allow us to confirm in which direction the movement will be in the near future. The uptrend continues, but the euro has no reason to grow and still doesn’t. The euro is overbought and should move downwards, but the market can still start forming a new cycle of baseless growth, and for now, we are observing a flat. On the 5-minute chart, it is recommended to trade at the levels 1.0792, 1.0857-1.0867, 1.0920-1.0933, 1.0980-1.1000, 1.1038, 1.1070, 1.1132, 1.1184, 1.1228. As soon as the price passes 15 pips in the right direction, you should set a Stop Loss to breakeven. On Monday, no important events or reports are planned in the European Union or the United States. Most likely, the flat will persist.
Basic rules of the trading system:
1) The strength of the signal is determined by the time it took the signal to form (a rebound or a breakout of the level). The quicker it is formed, the stronger the signal is.
2) If two or more positions were opened near a certain level based on a false signal (which did not trigger a Take Profit or test the nearest target level), then all subsequent signals at this level should be ignored.
3) When trading flat, a pair can form multiple false signals or not form them at all. In any case, it is better to stop trading at the first sign of a flat movement.
4) Trades should be opened in the period between the start of the European session and the middle of the US trading hours when all positions must be closed manually.
5) You can trade using signals from the MACD indicator on the 30-minute time frame only amid strong volatility and a clear trend that should be confirmed by a trendline or a trend channel.
6) If two levels are located too close to each other (from 5 to 15 pips), they should be considered support and resistance levels.
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 channels or trend lines that display the current trend and show in which direction it is better to trade now.
The MACD indicator (14, 22, and 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 patterns (channels and trendlines).
Important announcements and economic reports that can be found on the economic calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommend trading as carefully as possible or exiting the market in order to avoid sharp price fluctuations.
Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management is the key to success in trading over a long period of time.
The material has been provided by InstaForex Company – www.instaforex.com
Analyzing Friday’s trades:
EUR/USD on 30M chart
On Friday, the EUR/USD pair once again demonstrated weak movements and there was no trend. In principle, such a picture was observed almost from the very beginning of the week. The fundamental and macroeconomic backgrounds were weak, and even on days when they strengthened, the situation didn’t change much. The market has been buying the euro for no reason for a month, and now it has simply stopped being active in the market. Even on days when there are reasons for it to be actively traded. Therefore, it is still difficult to understand the logic of most market participants. All we can do is to take note of the groundless growth that has been replaced by a flat, which is even worse. If growth is, in any case, a movement that can be worked out on lower charts at least, then a flat is bad in any case. PMIs in the services and manufacturing sectors of the United States and the European Union were published. European PMIs were ignored, while American ones were assessed. However, the response was weak and had no impact on the flat.
EUR/USD on 5M chart
On the 5-minute chart, we could see how the pair moved during the last trading day of the previous week. It may seem that the movements were even quite strong, but the overall volatility of the day was only 55 points. Therefore, those rare bursts that we could see were still 30-35 points within the full flat. It was very difficult to work them out, and it didn’t make much sense. The only sell signal was formed near the area of 1.0980-1.1000 at the beginning of the US trading session. At that time, PMIs were released in the United States, and the dollar received support of 40 points. However, within the next few hours, the pair returned to its original positions, and the sell signal did not bring any profit to beginners – the price did not reach the target level. But the price still passed 15 points in the right direction, so beginners should have set a break-even stop loss. Accordingly, there was no loss either.
Trading tips on Monday:
On the 30-minute chart, the pair has been in a flat for several days. Unfortunately, the current situation does not allow us to confirm in which direction the movement will be in the near future. The uptrend continues, but the euro has no reason to grow and still doesn’t. The euro is overbought and should move downwards, but the market can still start forming a new cycle of baseless growth, and for now, we are observing a flat. On the 5-minute chart, it is recommended to trade at the levels 1.0792, 1.0857-1.0867, 1.0920-1.0933, 1.0980-1.1000, 1.1038, 1.1070, 1.1132, 1.1184, 1.1228. As soon as the price passes 15 pips in the right direction, you should set a Stop Loss to breakeven. On Monday, no important events or reports are planned in the European Union or the United States. Most likely, the flat will persist.
Basic rules of the trading system:
1) The strength of the signal is determined by the time it took the signal to form (a rebound or a breakout of the level). The quicker it is formed, the stronger the signal is.
2) If two or more positions were opened near a certain level based on a false signal (which did not trigger a Take Profit or test the nearest target level), then all subsequent signals at this level should be ignored.
3) When trading flat, a pair can form multiple false signals or not form them at all. In any case, it is better to stop trading at the first sign of a flat movement.
4) Trades should be opened in the period between the start of the European session and the middle of the US trading hours when all positions must be closed manually.
5) You can trade using signals from the MACD indicator on the 30-minute time frame only amid strong volatility and a clear trend that should be confirmed by a trendline or a trend channel.
6) If two levels are located too close to each other (from 5 to 15 pips), they should be considered support and resistance levels.
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 channels or trend lines that display the current trend and show in which direction it is better to trade now.
The MACD indicator (14, 22, and 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 patterns (channels and trendlines).
Important announcements and economic reports that can be found on the economic calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommend trading as carefully as possible or exiting the market in order to avoid sharp price fluctuations.
Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management is the key to success in trading over a long period of time.
The material has been provided by InstaForex Company – www.instaforex.com
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