Trading plan for EUR/USD on July 7. Simple tips for beginners
July 7, 2023 3:23 am
Analyzing Thursday’s trades:
EUR/USD on 30M chart
Low levels of EUR/USD volatility on Thursday. It was higher compared to Tuesday, but important reports were published in the US, and there were quite a lot of them. The pair moved from the day’s low to high by 69 points. It’s not small, but not a lot either.
The euro started the day higher. Despite the fact that the business activity index in the construction sector and retail sales were worse than forecasts, the market still bought the pair. In the second half of the day, the single currency fell, as two out of four reports turned out to be strong and boosted the dollar. However, by the end of the day, the pair traded higher, so the dollar did not exactly make notable gains. The movements turned out to be quite chaotic, but the pair has been between the levels of 1.0835 and 1.0918 all week. There is a weak bearish bias, but the movement looks more like a flat. And volatility has been weak too…
EUR/USD on 5M chart
Several entry points on the 5-minute chart. However, we want to highlight the fact that most of the levels are new, and the movements were as chaotic as possible due to a large amount of macro data. Frequent reversals and low volatility are a very dangerous “mix”. Therefore, if it was fine to trade in the first half of the day, then it was extremely unsafe in the second half.
Trading tips on Friday:
On the 30M chart, the pair has secured a position above the downward trend line, but failed to cross the 1.0932 level. So it’s obvious that the pair is not going to rise further anytime soon. We are still in favor of the downtrend. So far, this week’s movements have been extremely sluggish even on days when significant macro data have been available. The key levels on the 5M chart are 1.0733, 1.0761, 1.0835, 1.0871, 1.0901, 1.0932, 1.0971-1.0977, 1.1038, 1.1091, 1.1132. A stop loss can be set at a breakeven point as soon as the price moves 15 pips in the right direction. We are looking forward to the US NonFarm Payrolls report, as well as unemployment. These are important reports, so we expect high volatility. We might even witness sharp reversals throughout the 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 Thursday’s trades:
EUR/USD on 30M chart
Low levels of EUR/USD volatility on Thursday. It was higher compared to Tuesday, but important reports were published in the US, and there were quite a lot of them. The pair moved from the day’s low to high by 69 points. It’s not small, but not a lot either.
The euro started the day higher. Despite the fact that the business activity index in the construction sector and retail sales were worse than forecasts, the market still bought the pair. In the second half of the day, the single currency fell, as two out of four reports turned out to be strong and boosted the dollar. However, by the end of the day, the pair traded higher, so the dollar did not exactly make notable gains. The movements turned out to be quite chaotic, but the pair has been between the levels of 1.0835 and 1.0918 all week. There is a weak bearish bias, but the movement looks more like a flat. And volatility has been weak too…
EUR/USD on 5M chart
Several entry points on the 5-minute chart. However, we want to highlight the fact that most of the levels are new, and the movements were as chaotic as possible due to a large amount of macro data. Frequent reversals and low volatility are a very dangerous “mix”. Therefore, if it was fine to trade in the first half of the day, then it was extremely unsafe in the second half.
Trading tips on Friday:
On the 30M chart, the pair has secured a position above the downward trend line, but failed to cross the 1.0932 level. So it’s obvious that the pair is not going to rise further anytime soon. We are still in favor of the downtrend. So far, this week’s movements have been extremely sluggish even on days when significant macro data have been available. The key levels on the 5M chart are 1.0733, 1.0761, 1.0835, 1.0871, 1.0901, 1.0932, 1.0971-1.0977, 1.1038, 1.1091, 1.1132. A stop loss can be set at a breakeven point as soon as the price moves 15 pips in the right direction. We are looking forward to the US NonFarm Payrolls report, as well as unemployment. These are important reports, so we expect high volatility. We might even witness sharp reversals throughout the 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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