How to trade EUR/USD on April 27. Simple trading tips and analysis for beginners
April 27, 2023 3:23 am
Analyzing Wednesday’s trades:
EUR/USD on 30M chart
The EUR/USD pair started trading higher on Wednesday. Frankly, I find it slightly ironic because the movements remain so illogical that there are simply no words to describe them. The single currency began to rise early in the morning. Formally, the dollar’s decline could be related to the speech of the US Treasury Secretary Janet Yellen, who talked about the need to raise the debt ceiling, otherwise an “economic collapse” would occur. But in our fundamental articles, we will discuss in more detail why there is nothing to worry about in Yellen’s words. In short: the situation with the need to raise the debt ceiling arises once a year steadily. In addition to Yellen’s speech, a report on durable goods orders in the United States was published. This indicator turned out to be much stronger than forecasts and expectations and… provoked the fall of the US currency… In general, we saw another day with illogical movements. The pair continues to jump from side to side, ignoring everything possible.
EUR/USD on 5M chart
On the 5-minute chart, there were enough trading signals formed on Wednesday. At the very beginning of the European trading session, the pair overcame the area of 1.0980-1.1000, and according to this buy signal, it was necessary to open a long position. Subsequently, the price rose to 1.1038, overcame it and the next level of 1.1070. Long positions should have been closed on the first sell signal, which was formed when the price settled back below 1.1070. The profit for the long position was about 50 points. The sell signal could also be worked out, but it did not bring much profit – only about 10 points. The deal should have been closed on a bounce from 1.1038.
Trading tips on Thursday:
On the 30-minute chart, the pair left the flat and is now “aiming” for a new growth. I have already mentioned several times that the upward movement has no basis, and I’m sticking to that opinion. However, now the pair is neither growing nor falling, the movements are absolutely illogical, random. The pair may stand still for a week, and then show “swings” with an empty fundamental and macroeconomic background. On the 5-minute chart, consider 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 Thursday, the only important report of the day will be the US GDP for the fourth quarter in the first estimate. It is expected to be between 2.0-2.3%. However, the market may react to this data in any way. Do not expect a logical reaction.
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 Wednesday’s trades:
EUR/USD on 30M chart
The EUR/USD pair started trading higher on Wednesday. Frankly, I find it slightly ironic because the movements remain so illogical that there are simply no words to describe them. The single currency began to rise early in the morning. Formally, the dollar’s decline could be related to the speech of the US Treasury Secretary Janet Yellen, who talked about the need to raise the debt ceiling, otherwise an “economic collapse” would occur. But in our fundamental articles, we will discuss in more detail why there is nothing to worry about in Yellen’s words. In short: the situation with the need to raise the debt ceiling arises once a year steadily. In addition to Yellen’s speech, a report on durable goods orders in the United States was published. This indicator turned out to be much stronger than forecasts and expectations and… provoked the fall of the US currency… In general, we saw another day with illogical movements. The pair continues to jump from side to side, ignoring everything possible.
EUR/USD on 5M chart
On the 5-minute chart, there were enough trading signals formed on Wednesday. At the very beginning of the European trading session, the pair overcame the area of 1.0980-1.1000, and according to this buy signal, it was necessary to open a long position. Subsequently, the price rose to 1.1038, overcame it and the next level of 1.1070. Long positions should have been closed on the first sell signal, which was formed when the price settled back below 1.1070. The profit for the long position was about 50 points. The sell signal could also be worked out, but it did not bring much profit – only about 10 points. The deal should have been closed on a bounce from 1.1038.
Trading tips on Thursday:
On the 30-minute chart, the pair left the flat and is now “aiming” for a new growth. I have already mentioned several times that the upward movement has no basis, and I’m sticking to that opinion. However, now the pair is neither growing nor falling, the movements are absolutely illogical, random. The pair may stand still for a week, and then show “swings” with an empty fundamental and macroeconomic background. On the 5-minute chart, consider 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 Thursday, the only important report of the day will be the US GDP for the fourth quarter in the first estimate. It is expected to be between 2.0-2.3%. However, the market may react to this data in any way. Do not expect a logical reaction.
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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