How to trade EUR/USD on April 25. Simple trading tips and analysis for beginners
April 25, 2023 5:24 am
Analyzing Monday’s trades:
EUR/USD on 30M chart
The EUR/USD pair unexpectedly ended its flat movement and resumed its upward trajectory on Monday. It may just be a coincidence, and perhaps the flat will resume in a new form on Tuesday, as there were no significant macroeconomic reports in the US or the EU on Monday. The only thing worth mentioning is Pierre Wunsch’s (European Central Bank) speech, which suggested that the central bank could raise the key rate longer than the market expects. It is possible that this information helped the euro rise on Monday, but Wunsch’s speech wasn’t even on the event calendar. Therefore, it was impossible to predict the upward movement in advance. At the same time, I am not surprised by it, as the euro has been very keen to show growth out of thin air for at least the past month and a half. And there were even formal reasons for the market to buy the pair.
EUR/USD on 5M chart
There were quite a few trading signals on the 5-minute chart, but volatility was very weak again. First, the pair consolidated above the 1.0980-1.1000 area, which was a buy signal. On the third attempt, the pair finally started to grow and reached the nearest target level of 1.1038 by mid-US session. Closing the trade near this level, beginners could have earned about 20-25 points. It was no longer necessary to work out the sell signal, as it was formed quite late. The profit is small, but with the overall daily volatility of about 70 points, this result is worth being happy about.
Trading tips on Tuesday:
On the 30-minute chart, the pair has left the flat and is once again aiming for growth. I have already mentioned that the upward movement had no basis for growth, and I’m sticking to that opinion. I regularly discuss the reasons for this position in our fundamental articles. The market cannot be forbidden to buy, even if there are no reasons for it. Therefore, the movement is illogical, but we have to work with what we have. 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 Tuesday, there are no important events or reports planned in the European Union or the United States. However, Monday showed that the market is trading more trend-like than last week. Therefore, we may see modest euro growth on Tuesday as well.
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 Monday’s trades:
EUR/USD on 30M chart
The EUR/USD pair unexpectedly ended its flat movement and resumed its upward trajectory on Monday. It may just be a coincidence, and perhaps the flat will resume in a new form on Tuesday, as there were no significant macroeconomic reports in the US or the EU on Monday. The only thing worth mentioning is Pierre Wunsch’s (European Central Bank) speech, which suggested that the central bank could raise the key rate longer than the market expects. It is possible that this information helped the euro rise on Monday, but Wunsch’s speech wasn’t even on the event calendar. Therefore, it was impossible to predict the upward movement in advance. At the same time, I am not surprised by it, as the euro has been very keen to show growth out of thin air for at least the past month and a half. And there were even formal reasons for the market to buy the pair.
EUR/USD on 5M chart
There were quite a few trading signals on the 5-minute chart, but volatility was very weak again. First, the pair consolidated above the 1.0980-1.1000 area, which was a buy signal. On the third attempt, the pair finally started to grow and reached the nearest target level of 1.1038 by mid-US session. Closing the trade near this level, beginners could have earned about 20-25 points. It was no longer necessary to work out the sell signal, as it was formed quite late. The profit is small, but with the overall daily volatility of about 70 points, this result is worth being happy about.
Trading tips on Tuesday:
On the 30-minute chart, the pair has left the flat and is once again aiming for growth. I have already mentioned that the upward movement had no basis for growth, and I’m sticking to that opinion. I regularly discuss the reasons for this position in our fundamental articles. The market cannot be forbidden to buy, even if there are no reasons for it. Therefore, the movement is illogical, but we have to work with what we have. 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 Tuesday, there are no important events or reports planned in the European Union or the United States. However, Monday showed that the market is trading more trend-like than last week. Therefore, we may see modest euro growth on Tuesday as well.
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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