Trading plan for EUR/USD on April 10. Simple tips for beginners
April 10, 2024 7:22 am
Analyzing Tuesday’s trades:
EUR/USD on 1H chart
EUR/USD tried to continue its upward movement, although it had no substantial reason to do so (neither fundamental nor macroeconomic). Yesterday, there were absolutely no reports, news, or speeches. Volatility was low again, but even in such conditions, the euro continued to edge up. From a technical perspective, this would seem logical since the price surpassed the trend line. This means that the market has turned bullish. However, we want to remind you that today the U.S. will release significant data on the Consumer Price Index, and tomorrow the results of the European Central Bank meeting will be announced. This could change the situation. The euro has more reasons to fall than to rise. Moreover, traders failed to surpass the level of 1.0888.
EUR/USD on 5M chart
Two trading signals were generated on the 5-minute timeframe. Initially, the pair bounced off the level of 1.0856, and then – off 1.0888 and returned back to 1.0856. Thus, novice traders could open two trading deals, each of which brought them about 10 pips of profit. This is exactly what we have been constantly talking about lately. If there is no volatility, then it doesn’t matter what the trading signals are, it is extremely difficult to achieve good profit from them.
Trading tips on Wednesday:
On the hourly chart, the downtrend persists, but it will likely end soon. The market has started to buy the euro for no substantial reason. We believe that the euro should continue to fall regardless, as it is still too high, and the global trend is downward. Unfortunately, the market doesn’t always want to trade the pair in a logical manner, and occasionally, it exhibits unreasonable rallies.
Today, you may try to trade from the nearest levels. Volatility may increase, but it is unlikely to last long. Most likely, we will see a surge in market activity at the beginning of the U.S. session and that’s it.
The key levels on the 5M chart are 1.0568, 1.0611-1.0618, 1.0668, 1.0725, 1.0785-1.0797, 1.0838-1.0856, 1.0888-1.0896, 1.0940, 1.0971-1.0981, 1.1011, 1.1043, 1.1091. Today, there are no important events scheduled in the European Union. Moving forward, the U.S. docket will feature the CPI and the minutes of the last Federal Reserve meeting. We consider the latter to be secondary of importance, and it is also scheduled for late evening.
Basic trading rules:
1) Signal strength is determined by the time taken for its formation (either a bounce or level breach). A shorter formation time indicates a stronger signal.
2) If two or more trades around a certain level are initiated based on false signals, subsequent signals from that level should be disregarded.
3) In a flat market, any currency pair can produce multiple false signals or none at all. In any case, the flat trend is not the best condition for trading.
4) Trading activities are confined between the onset of the European session and mid-way through the U.S. session, after which all open trades should be manually closed.
5) On the 30-minute timeframe, trades based on MACD signals are only advisable amidst substantial volatility and an established trend, confirmed either by a trendline or trend channel.
6) If two levels lie closely together (ranging from 5 to 15 pips apart), they should be considered as a support or resistance zone.
How to read charts:
Support and Resistance price levels can serve as targets when buying or selling. You can place Take Profit levels near them.
Red lines represent channels or trend lines, depicting the current market trend and indicating the preferable trading direction.
The MACD(14,22,3) indicator, encompassing both the histogram and signal line, acts as an auxiliary tool and can also be used as a signal source.
Significant speeches and reports (always noted in the news calendar) can profoundly influence the price dynamics. Hence, trading during their release calls for heightened caution. It may be reasonable to exit the market to prevent abrupt price reversals against the prevailing trend.
Beginning traders should always remember that not every trade will yield profit. Establishing a clear strategy coupled with sound money management is the cornerstone of sustained trading success.
The material has been provided by InstaForex Company – www.instaforex.com
Analyzing Tuesday’s trades:
EUR/USD on 1H chart
EUR/USD tried to continue its upward movement, although it had no substantial reason to do so (neither fundamental nor macroeconomic). Yesterday, there were absolutely no reports, news, or speeches. Volatility was low again, but even in such conditions, the euro continued to edge up. From a technical perspective, this would seem logical since the price surpassed the trend line. This means that the market has turned bullish. However, we want to remind you that today the U.S. will release significant data on the Consumer Price Index, and tomorrow the results of the European Central Bank meeting will be announced. This could change the situation. The euro has more reasons to fall than to rise. Moreover, traders failed to surpass the level of 1.0888.
EUR/USD on 5M chart
Two trading signals were generated on the 5-minute timeframe. Initially, the pair bounced off the level of 1.0856, and then – off 1.0888 and returned back to 1.0856. Thus, novice traders could open two trading deals, each of which brought them about 10 pips of profit. This is exactly what we have been constantly talking about lately. If there is no volatility, then it doesn’t matter what the trading signals are, it is extremely difficult to achieve good profit from them.
Trading tips on Wednesday:
On the hourly chart, the downtrend persists, but it will likely end soon. The market has started to buy the euro for no substantial reason. We believe that the euro should continue to fall regardless, as it is still too high, and the global trend is downward. Unfortunately, the market doesn’t always want to trade the pair in a logical manner, and occasionally, it exhibits unreasonable rallies.
Today, you may try to trade from the nearest levels. Volatility may increase, but it is unlikely to last long. Most likely, we will see a surge in market activity at the beginning of the U.S. session and that’s it.
The key levels on the 5M chart are 1.0568, 1.0611-1.0618, 1.0668, 1.0725, 1.0785-1.0797, 1.0838-1.0856, 1.0888-1.0896, 1.0940, 1.0971-1.0981, 1.1011, 1.1043, 1.1091. Today, there are no important events scheduled in the European Union. Moving forward, the U.S. docket will feature the CPI and the minutes of the last Federal Reserve meeting. We consider the latter to be secondary of importance, and it is also scheduled for late evening.
Basic trading rules:
1) Signal strength is determined by the time taken for its formation (either a bounce or level breach). A shorter formation time indicates a stronger signal.
2) If two or more trades around a certain level are initiated based on false signals, subsequent signals from that level should be disregarded.
3) In a flat market, any currency pair can produce multiple false signals or none at all. In any case, the flat trend is not the best condition for trading.
4) Trading activities are confined between the onset of the European session and mid-way through the U.S. session, after which all open trades should be manually closed.
5) On the 30-minute timeframe, trades based on MACD signals are only advisable amidst substantial volatility and an established trend, confirmed either by a trendline or trend channel.
6) If two levels lie closely together (ranging from 5 to 15 pips apart), they should be considered as a support or resistance zone.
How to read charts:
Support and Resistance price levels can serve as targets when buying or selling. You can place Take Profit levels near them.
Red lines represent channels or trend lines, depicting the current market trend and indicating the preferable trading direction.
The MACD(14,22,3) indicator, encompassing both the histogram and signal line, acts as an auxiliary tool and can also be used as a signal source.
Significant speeches and reports (always noted in the news calendar) can profoundly influence the price dynamics. Hence, trading during their release calls for heightened caution. It may be reasonable to exit the market to prevent abrupt price reversals against the prevailing trend.
Beginning traders should always remember that not every trade will yield profit. Establishing a clear strategy coupled with sound money management is the cornerstone of sustained trading success.
The material has been provided by InstaForex Company – www.instaforex.com
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