How to trade EUR/USD on February 10. Simple trading tips and analysis for beginners

On Thursday, EUR/USD managed to get out of the sideways channel it spent two days in and started a new upward movement. I already warned you that this week's uptrend would be a logical development after the pair's slump at the end of last week. And so far, everything is going according to plan. No important reports were released on Thursday, there were no important events, and volatility remained low. So there is nothing new to say about technique or fundamentals right now. We still have no trend line or channel, although the downtrend is clearly visible. However, there is no second pivot point to form the first or the second. Therefore, we have to trade solely on the levels.

Since the movement remains quite weak, not many trading signals are formed, and they are not of the highest quality. Two buy signals were formed. First, the pair overcame 1.0761, and then it bounced from above. In the first case, it was able to pass about 10 points in the right direction, so beginners could stay in the long position when the second signal was being formed, which was already opened. It should have been closed closer to the evening. There couldn't have been a loss on it because from the second hit the price went up more than 15 points, so the Stop Loss should have been triggered at Breakeven. Having closed the deal manually (as expected), it was possible to get a couple of dozens of profits, which is not bad, given the current level of volatility.

On the 30-minute chart, the pair started the correction that I warned you about. I expect a sharper fall from the euro since it has been rising for a long time without justification, so it is unlikely that the upward movement would last for a long time. There is no trend line or channel yet, we need a bullish correction to form a second pivot point. On the 5-minute chart, it is recommended to trade at the levels 1.0535, 1.0587-1.0607, 1.0669, 1.0697, 1.0761, 1.0809, 1.0857-1.0867. As soon as the price passes 15 pips in the right direction, you should set a Stop Loss to breakeven. On Friday, the fundamental picture in the EU and the US will not change. The European Central Bank and the Federal Reserve will give speeches again and the US will release a report on consumer sentiment from the University of Michigan, which will only cause a reaction if the actual value deviates much from the expected one.

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.