Trading plan for EUR/USD on June 13. Simple tips for beginners
June 13, 2023 3:24 am
Analyzing Monday’s trades:
EUR/USD on 30M chart
The EUR/USD pair showed weak volatility on Monday, as we had warned earlier. There were no significant reports or fundamental events published in either the US or the eurozone throughout the day. As a result, there was nothing to react to, and traders lacked the desire to trade in a vacuum, especially with four highly important days ahead. Therefore, the pair remained calmly within a limited price range, which we have been consistently mentioning lately (highlighted by the rectangle on the chart). In fact, it has already formed a sideways channel in which the pair has been trading for over two weeks. The level of 1.0792 remained unbroken after two or three attempts, indicating the current sideways trend. However, the situation can change this week as there will be an abundance of important events.
EUR/USD on 5M chart
Several trading signals materialized on the 5-minute chart. During the night, the pair bounced off the level of 1.0733, and at the opening of the European trading session, it only slightly deviated from the formation point, allowing traders to confidently open long positions. Subsequently, the price passed through the level of 1.0761 and reached the level of 1.0792, which it accurately bounced off, forming a signal to sell. Therefore, at this point, long positions should have been closed (with a profit of 35 pips) and short positions opened. The price dropped below the level of 1.0761, where the short position could have been manually closed. The profit amounted to around 30 pips. Thanks to the precise signals on Monday, it was possible to earn 65 pips with a total volatility of about 50…
Trading tips on Tuesday:
On the 30M chart, the pair indicates a slight inclination to terminate its descending trend, but for now, it is moving sideways more than up or down. In the medium term, we anticipate a resumption of the downtrend. However, it may take quite some time before the trend returns. If the pair surpasses the 1.0792 level, it may trade higher. The key levels on the 5M chart are 1.0517-1.0533, 1.0607-1.0613, 1.0673, 1.0733, 1.0761, 1.0792, 1.0857-1.0867, 1.0918-1.0933. A stop loss can be set at a breakeven point as soon as the price moves 15 pips in the right direction. No significant events lined up in the EU, only secondary reports. However, the US will publish the inflation report for May, which is of enormous significance because the Federal Reserve’s meeting begins on Tuesday and concludes on Wednesday evening.
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 Monday’s trades:
EUR/USD on 30M chart
The EUR/USD pair showed weak volatility on Monday, as we had warned earlier. There were no significant reports or fundamental events published in either the US or the eurozone throughout the day. As a result, there was nothing to react to, and traders lacked the desire to trade in a vacuum, especially with four highly important days ahead. Therefore, the pair remained calmly within a limited price range, which we have been consistently mentioning lately (highlighted by the rectangle on the chart). In fact, it has already formed a sideways channel in which the pair has been trading for over two weeks. The level of 1.0792 remained unbroken after two or three attempts, indicating the current sideways trend. However, the situation can change this week as there will be an abundance of important events.
EUR/USD on 5M chart
Several trading signals materialized on the 5-minute chart. During the night, the pair bounced off the level of 1.0733, and at the opening of the European trading session, it only slightly deviated from the formation point, allowing traders to confidently open long positions. Subsequently, the price passed through the level of 1.0761 and reached the level of 1.0792, which it accurately bounced off, forming a signal to sell. Therefore, at this point, long positions should have been closed (with a profit of 35 pips) and short positions opened. The price dropped below the level of 1.0761, where the short position could have been manually closed. The profit amounted to around 30 pips. Thanks to the precise signals on Monday, it was possible to earn 65 pips with a total volatility of about 50…
Trading tips on Tuesday:
On the 30M chart, the pair indicates a slight inclination to terminate its descending trend, but for now, it is moving sideways more than up or down. In the medium term, we anticipate a resumption of the downtrend. However, it may take quite some time before the trend returns. If the pair surpasses the 1.0792 level, it may trade higher. The key levels on the 5M chart are 1.0517-1.0533, 1.0607-1.0613, 1.0673, 1.0733, 1.0761, 1.0792, 1.0857-1.0867, 1.0918-1.0933. A stop loss can be set at a breakeven point as soon as the price moves 15 pips in the right direction. No significant events lined up in the EU, only secondary reports. However, the US will publish the inflation report for May, which is of enormous significance because the Federal Reserve’s meeting begins on Tuesday and concludes on Wednesday evening.
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
Related Posts: