FX.co ★ EUR/USD: Simple trading tips for novice traders on May 7th (US session)

Analysis of trades and trading tips for the European currency

There was no testing of the levels I indicated due to the low market volatility in the first half of the day. Decent data came out for France and Germany and retail sales in the eurozone. But all of this was not enough to stir the market after Friday's spike, formed against the backdrop of US labor market data. Objectively, looking at the US data today, I don't expect anything good from the second half of the day. Figures on the RCM/TIPP Economic Optimism Index and consumer credit volume are unlikely to strongly impact the pair's direction, so I will stick to trading more within the sideways channel. As for the intraday strategy, I plan to act based on scenario No. 2, as I do not expect strong movements.

Buy signal

Scenario No. 1: Today, I plan to buy the euro when the price reaches around 1.0778 (green line on the chart), with a target of rising to 1.0815. At 1.0815, I will exit the market and sell the euro in the opposite direction, expecting a movement of 30-35 points from the entry point. Today, the euro's rise can be expected only after weak US statistics. Important! Before buying, ensure the MACD indicator is above the zero mark and starting to rise.

Scenario No. 2: I also plan to buy the euro today in case of two consecutive tests of the price at 1.0756 when the MACD indicator is in the oversold area. This will limit the downward potential of the pair and lead to a reverse market turnaround upwards. Expect a rise to the opposite levels of 1.0778 and 1.0815.

Sell signal

Scenario No. 1: I will sell the euro after reaching the level of 1.0756 (red line on the chart). The target will be 1.0724, where I plan to exit the market and buy the euro immediately in the opposite direction (expecting a movement of 20-25 points in the opposite direction from the level). Pressure on the pair will return without buyer activity around the daily maximum and strong US data. Important! Before selling, ensure the MACD indicator is below the zero mark and just starting to decrease.

Scenario No. 2: I also plan to sell the euro today in case of two consecutive price tests at 1.0778 when the MACD indicator is in the overbought area. This will limit the upward potential of the pair and lead to a reverse market turnaround downwards. Expect a decline to the opposite levels of 1.0756 and 1.0724.

What's on the chart:

Thin green line - entry price, at which the trading instrument can be bought.

Thick green line - expected price, where Take Profit can be placed, or profits can be fixed independently, as further growth above this level is unlikely.

Thin red line - entry price at which the trading instrument can be sold.

Thick red line - expected price, where Take Profit can be placed or profits can be fixed independently, as further decline below this level is unlikely.

MACD indicator. When entering the market, following the overbought and oversold zones is important.

Important. Beginner traders in the forex market must carefully decide about entering the market. It is best to stay out of the market before important fundamental reports are released to avoid being caught in sharp exchange rate fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. You must place stop orders to lose your entire deposit quickly, especially if you do not use money management and trade with large volumes.

And remember, for successful trading, it is necessary to have a clear trading plan similar to the one I presented above. Spontaneous trading decisions based on the current market situation are initially a losing strategy for an intraday trader.