How to trade EUR/USD on March 7. Simple trading tips and analysis for beginners

EUR/USD was moving almost perfectly again. But this is if you look at the movements from a technical point of view. The pair rebounded several times from 1.0587 and rose to 1.0692. Basically, now you can easily identify the horizontal channel for the euro as well - 1.0587-1.0692 area. So, both main pairs are more or less in the horizontal channel or in the flat. We can observe "swings" for the pound, while the channel is wider than the one for the euro. No fundamental background yesterday. The EU retail sales report could not provoke the strengthening of the euro, and a speech of the European Central Bank's chief economist Philip Lane did not provide any new information to traders. That's why I think that all of the pair's movements were just technical. Today, we can expect a rebound from 1.0692 and the pair will fall.

The 5-minute chart shows that the pair was rising on Monday, but is still in a horizontal channel. If you add levels to this, there will be a lot of false signals every day. We did not do that, so there was only one signal on Monday, when the price reached and rebounded from 1.0692. Beginners could work it off at will. If they did, they did not incur any losses, since the price remained below the entry level by the end of the day. If it did not work out then that's fine too, because the signal was formed quite late.

On the 30-minute chart, the pair is already trading inside the horizontal channel, following the pound's example. So today we might see a downward spiral, even if it is not logical from a macroeconomic or fundamental perspective. The euro shouldn't have increased yesterday either. On the 5-minute chart, it is recommended to trade at the levels 1.0433, 1.0465-1.0483, 1.0535, 1.0587-1.0607, 1.0692, 1.0792, 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 Tuesday there is nothing interesting in the European Union, while in the US, Federal Reserve Chairman Jerome Powell will give a speech. The speech will take place later in the evening, so to avoid being caught in the "storm", it's better to leave the market before the event. Or place Stop Loss orders. I don't expect a strong market reaction to Powell's speech, but it is not one hundred percent probable.

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.