Trading plan for EUR/USD on August 17. Simple tips for beginners
August 17, 2023 4:23 am
Analyzing Wednesday’s trades:
EUR/USD on 30M chart
On Wednesday, the EUR/USD remained depressed. We have repeatedly said that we expect the euro to fall, and we don’t even consider other options, and that it will likely be a gradual decline. As we can see, the pair loses about 20-30 points a day, and not always. The EU released reports on GDP and industrial production, but we already said that we don’t expect a strong market reaction to them. This is how it turned out. Volatility was 51 points, and we saw the strongest movements during the US trading session. The US released secondary economic reports, but industrial production, which grew by 1% instead of the forecasted 0.2-0.3%, still stood out. Therefore, the US dollar received some support in the second half of the day.
EUR/USD on 5M chart
There were few trading signals on the 5-minute chart. The first one was formed on the rebound from the level of 1.0936. After that, the price dipped to the area of 1.0901-1.0904, rebounded from it twice, and eventually overcame it. These were all signals, but there is one nuance. Three signals were formed around the designated area, and the first two turned out to be false. It turns out that traders could earn around 15 pips on the first short position, the second long position had a Stop Loss at breakeven, and the third long position resulted in a small loss. Overall, the day ended with no profit.
Trading tips on Thursday:
On the 30M chart, the pair is trading with a downward tendency, and may continue to fall, which, in our opinion, is still the most justified and logical course of events. We don’t see any macroeconomic background that would be capable of changing market sentiment this week. The key levels on the 5M chart are 1.0733, 1.0761, 1.0835, 1.0871, 1.0901-1.0904, 1.0936, 1.0971-1.0981, 1.1011, 1.1043, 1.1091. A stop loss can be set at a breakeven point as soon as the price moves 15 pips in the right direction. Nothing interesting lined up for the European Union. The US will release a report on claims for unemployment benefits. Most likely, we should brace ourselves for another low-volatility day.
Basic trading rules:
1) The strength of the signal depends on the time period during which the signal was formed (a rebound or a break). The shorter this period, the stronger the signal.
2) If two or more trades were opened at some level following false signals, i.e. those signals that did not lead the price to Take Profit level or the nearest target levels, then any consequent signals near this level should be ignored.
3) During the flat trend, any currency pair may form a lot of false signals or do not produce any signals at all. In any case, the flat trend is not the best condition for trading.
4) Trades are opened in the time period between the beginning of the European session and until the middle of the American one when all deals should be closed manually.
5) We can pay attention to the MACD signals in the 30M time frame only if there is good volatility and a definite trend confirmed by a trend line or a trend channel.
6) If two key levels are too close to each other (about 5-15 pips), then this is a support or resistance area.
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 are channels or trend lines that display the current trend and show which direction is better to trade.
MACD indicator (14,22,3) is a histogram and a signal line showing when it is better to enter the market when they cross. This indicator is better to be used in combination with trend channels or trend lines.
Important speeches and reports that are always reflected in the economic calendars can greatly influence the movement of a currency pair. Therefore, during such events, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement.
Beginners should remember that every trade cannot be profitable. The development of a reliable strategy and money management are 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
On Wednesday, the EUR/USD remained depressed. We have repeatedly said that we expect the euro to fall, and we don’t even consider other options, and that it will likely be a gradual decline. As we can see, the pair loses about 20-30 points a day, and not always. The EU released reports on GDP and industrial production, but we already said that we don’t expect a strong market reaction to them. This is how it turned out. Volatility was 51 points, and we saw the strongest movements during the US trading session. The US released secondary economic reports, but industrial production, which grew by 1% instead of the forecasted 0.2-0.3%, still stood out. Therefore, the US dollar received some support in the second half of the day.
EUR/USD on 5M chart
There were few trading signals on the 5-minute chart. The first one was formed on the rebound from the level of 1.0936. After that, the price dipped to the area of 1.0901-1.0904, rebounded from it twice, and eventually overcame it. These were all signals, but there is one nuance. Three signals were formed around the designated area, and the first two turned out to be false. It turns out that traders could earn around 15 pips on the first short position, the second long position had a Stop Loss at breakeven, and the third long position resulted in a small loss. Overall, the day ended with no profit.
Trading tips on Thursday:
On the 30M chart, the pair is trading with a downward tendency, and may continue to fall, which, in our opinion, is still the most justified and logical course of events. We don’t see any macroeconomic background that would be capable of changing market sentiment this week. The key levels on the 5M chart are 1.0733, 1.0761, 1.0835, 1.0871, 1.0901-1.0904, 1.0936, 1.0971-1.0981, 1.1011, 1.1043, 1.1091. A stop loss can be set at a breakeven point as soon as the price moves 15 pips in the right direction. Nothing interesting lined up for the European Union. The US will release a report on claims for unemployment benefits. Most likely, we should brace ourselves for another low-volatility day.
Basic trading rules:
1) The strength of the signal depends on the time period during which the signal was formed (a rebound or a break). The shorter this period, the stronger the signal.
2) If two or more trades were opened at some level following false signals, i.e. those signals that did not lead the price to Take Profit level or the nearest target levels, then any consequent signals near this level should be ignored.
3) During the flat trend, any currency pair may form a lot of false signals or do not produce any signals at all. In any case, the flat trend is not the best condition for trading.
4) Trades are opened in the time period between the beginning of the European session and until the middle of the American one when all deals should be closed manually.
5) We can pay attention to the MACD signals in the 30M time frame only if there is good volatility and a definite trend confirmed by a trend line or a trend channel.
6) If two key levels are too close to each other (about 5-15 pips), then this is a support or resistance area.
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 are channels or trend lines that display the current trend and show which direction is better to trade.
MACD indicator (14,22,3) is a histogram and a signal line showing when it is better to enter the market when they cross. This indicator is better to be used in combination with trend channels or trend lines.
Important speeches and reports that are always reflected in the economic calendars can greatly influence the movement of a currency pair. Therefore, during such events, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement.
Beginners should remember that every trade cannot be profitable. The development of a reliable strategy and money management are 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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