How to trade EUR/USD on August 23? Simple tips for beginners.

The EUR/USD currency pair continued and continues its downward movement on Monday, despite the empty calendar of macroeconomic events. As you can see, traders do not need macroeconomics or foundation at all now, which once again confirms our assumption that the market continues to sell off the euro based on global factors that have been operating for a long time. Therefore, we have the right to count on further depreciation of the euro. But the question remains open, to what levels can it fall? We have already said that, theoretically, the fall can continue as long as the Federal Reserve raises the key rate. What does it all have to do with the Fed, not the European Central Bank. On the pound's example, we clearly see that the Bank of England also raises the rate, but this does not really save the British currency from falling. There will be practically no macroeconomic and fundamental events this week, but traders do not need them now. The price is clearly below the downtrend line, so the downward trend continues. It will be possible to count on the pair's growth not earlier than consolidating above the trend line.

Monday's movements on the 5-minute timeframe look quite good. The price stuck around the 1.0000 level only for a while, but then continued to fall and has now overcome the 0.9952 level, which is the lowest level in the last 20 years. As for trading signals, everything was ambiguous with them. Novice traders missed the beginning of the downward movement, because the pair simply resumed its fall even without correction. The first buy signals were formed during two bounces from the 1.0000 level. Both turned out to be false, but only one deal should have been opened on them. It took a loss when the price settled below the 1.0000 level. On the other hand, the sell signal turned out to be very strong, as the pair dropped to the level of 0.9952 and overcame it. In total, the price went down by about 50 points, and that's how many newbies could get on this deal. Thus, the morning loss was more than covered.

The quotes can continue to fall for a long time on the 30-minute timeframe. In any case, we now have a descending trend line, so it is much easier to navigate in space. We believe that most factors, fundamental and geopolitical, remain on the US dollar's side, so we expect its further growth in the medium term. Moreover, now there is no reason to buy the pair. On the 5-minute TF on Tuesday, it is recommended to trade at the levels of 0.9952, 1.0000, 1.0072, 1.0123, 1.0156. When passing 15 points in the right direction, you should set Stop Loss to breakeven. The European Union and the US will publish indexes of business activity in the services and manufacturing sectors. Considering how and in what direction quotes are currently moving, we strongly doubt that traders even need macroeconomic reports to make trading decisions.

1) The signal strength is calculated by the time it took to form the signal (bounce or overcome the level). The less time it took, the stronger the signal.

2) If two or more deals were opened near a certain level based on false signals (which did not trigger Take Profit or the nearest target level), then all subsequent signals from this level should be ignored.

3) In a flat, any pair can form a lot of false signals or not form them at all. But in any case, at the first signs of a flat, it is better to stop trading.

4) Trade deals are opened in the time period between the beginning of the European session and until the middle of the US one, when all deals must be closed manually.

5) On the 30-minute TF, using signals from the MACD indicator, you can trade only if there is good volatility and a trend, which is confirmed by a trend line or a trend channel.

6) If two levels are located too close to each other (from 5 to 15 points), then they should be considered as an area of support or resistance.

Support and Resistance Levels are the Levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.

Red lines are the channels or trend lines that display the current trend and show in which direction it is better to trade now.

The MACD indicator (14,22,3) consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend lines (channels and trend lines).

Important speeches and reports (always contained in the news calendar) can greatly influence the movement of a currency pair. Therefore, during their exit, 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 on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time.