Trading plan for EUR/USD on June 27. Simple tips for beginners
June 27, 2023 3:23 am
Analyzing Monday’s trades:
EUR/USD on 30M chart
EUR/USD started the week without any notable movements, which is not surprising since Mondays are often dull due to weak price actions. Throughout the day, the pair reached the 1.0918 level and even rebounded from it, indicating that the general trend of the currency pair may turn bearish. Previously, the pair left the ascending channel, further indicating a higher probability of a downtrend this week. The only notable fundamental event in the eurozone and the United States was European Central Bank President Christine Lagarde’s speech at the ECB Summit in Sintra. However, her speech took place in the late night and could not have had any impact on trading during the day. In general, there were no other significant events on Monday.
EUR/USD on 5M chart
On the 5-minute chart, you can also clearly see that the pair traded very weakly, showing a volatility of only 33 pips. This is not just low, in fact, it’s extremely low. And with such low volatility, it made no sense to enter the market. Fortunately, only one trading signal materialized. During the US trading session, the pair rebounded from the 1.0918 level and moved down by about 10 pips, which could have been profitable since there weren’t any signals until the evening. Therefore, the trade should have been manually closed.
Trading tips on Tuesday:
On the 30M chart, the pair has settled below the ascending channel, indicating a bearish shift, and we hope that the pair will continue to fall. We have repeatedly mentioned that we expect the euro to fall in the medium term because, from our perspective, there are more factors supporting this view than supporting an upward move. The key levels on the 5M chart are 1.0733, 1.0761, 1.0803, 1.0857-1.0867, 1.0918-1.0933, 1.0980, 1.1038, 1.1070, and 1.1132. A stop loss can be set at a breakeven point as soon as the price moves 15 pips in the right direction. On Tuesday, Lagarde will deliver another speech in the eurozone, and in the US, there will be a moderately important report on durable goods orders. Both events can influence market sentiment and the movement of the main currency pair.
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
EUR/USD started the week without any notable movements, which is not surprising since Mondays are often dull due to weak price actions. Throughout the day, the pair reached the 1.0918 level and even rebounded from it, indicating that the general trend of the currency pair may turn bearish. Previously, the pair left the ascending channel, further indicating a higher probability of a downtrend this week. The only notable fundamental event in the eurozone and the United States was European Central Bank President Christine Lagarde’s speech at the ECB Summit in Sintra. However, her speech took place in the late night and could not have had any impact on trading during the day. In general, there were no other significant events on Monday.
EUR/USD on 5M chart
On the 5-minute chart, you can also clearly see that the pair traded very weakly, showing a volatility of only 33 pips. This is not just low, in fact, it’s extremely low. And with such low volatility, it made no sense to enter the market. Fortunately, only one trading signal materialized. During the US trading session, the pair rebounded from the 1.0918 level and moved down by about 10 pips, which could have been profitable since there weren’t any signals until the evening. Therefore, the trade should have been manually closed.
Trading tips on Tuesday:
On the 30M chart, the pair has settled below the ascending channel, indicating a bearish shift, and we hope that the pair will continue to fall. We have repeatedly mentioned that we expect the euro to fall in the medium term because, from our perspective, there are more factors supporting this view than supporting an upward move. The key levels on the 5M chart are 1.0733, 1.0761, 1.0803, 1.0857-1.0867, 1.0918-1.0933, 1.0980, 1.1038, 1.1070, and 1.1132. A stop loss can be set at a breakeven point as soon as the price moves 15 pips in the right direction. On Tuesday, Lagarde will deliver another speech in the eurozone, and in the US, there will be a moderately important report on durable goods orders. Both events can influence market sentiment and the movement of the main currency pair.
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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