How to trade EUR/USD on January 11. Simple trading tips and analysis for beginners

EUR/USD was trading flat on Tuesday. The market finally enjoyed Friday's US data, spent two days buying the euro, and only managed to calm down on Tuesday. Since there were no reports for the day, there was also no movement, which makes some sense. And there is less and less logic in the pair's movements every day. Federal Reserve Chairman Jerome Powell was set to hold a speech on Tuesday, but considering the volatility of the day, which is 48 pips, the Fed chief hardly said anything important. Likewise, there is no trend right now, though it was noticeably higher on Friday and Monday. On the higher chart, you can see that the price is moving quite well, but mainly sideways. Therefore, both flat and "swings" are possible now.

At the European trading session, beginners could not enter the trading terminal at all. The pair was moving along 1.0736 for about 6 hours, moving 10-15 pips up and down. Of course, you could consider the trading signals here if you wanted, but we consider such movement to be a pure flat, so it was not worthwhile to enter the market. At the US trading session, it became clear that strong and trendy movements shouldn't be expected, even though the quotes dropped below 1.0736. Two signals were formed near this level, but I think it isn't worth the risk, since it was the time when Powell's speech started and nobody knew how it would end. In fact, it ended with nothing, but a flat is a certain movement, which is better to avoid.

The pair started a new upward movement on the 30-minute chart, which is not logical and reasonable and could be part of a flat or "swing" on the higher chart. I still believe that the euro should fall, and quite sharply at that, but the market shows that it is not ready to sell yet and instead it uses any excuse to buy the euro. On the 5-minute chart, it is recommended to trade at the levels 1.0536, 1.0587-1.0607, 1.0657-1.0668, 1.0697, 1.0736, 1.0787-1.0806, 1.0837, 1.0905. As soon as the price passes 15 pips in the right direction, you should set a Stop Loss to breakeven. There are no important events planned in the EU and the US on Wednesday. Therefore, volatility may remain low and there may be no trend movement.

1) The strength of the signal is determined by the time it took the signal to form (a rebound or a breakout of the level). The quicker it is formed, the stronger the signal is.

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

3) When trading flat, a pair can form multiple false signals or not form them at all. In any case, it is better to stop trading at the first sign of a flat movement.

4) Trades should be opened in the period between the start of the European session and the middle of the US trading hours when all positions must be closed manually.

5) You can trade using signals from the MACD indicator on the 30-minute time frame only amid strong volatility and a clear trend that should be confirmed by a trendline or a trend channel.

6) If two levels are located too close to each other (from 5 to 15 pips), they should be considered support and resistance levels.

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 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, and 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 patterns (channels and trendlines).

Important announcements and economic reports that can be found on the economic calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommend trading as carefully as possible or exiting the market in order to avoid sharp price fluctuations.

Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management is the key to success in trading over a long period of time.