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

The EUR/USD pair moved in a strange way on Thursday. It was neither a correction nor an upward movement. There was no trend or correction. EUR/USD was just moving sideways all day long with a slight upward bias closer to the evening. So there was practically nothing to analyze for the day. There were no significant reports or events that traders would find interesting. Only the US jobless claims report was published, which was close to projections, as usual. Thus, there was no reaction to it either. In general, the pair maintains the uptrend on the one-hour chart and Friday is the most important day of this week. However, the macroeconomic background will only be present in the US, so the pair is unlikely to show any sharp movements during the European session. It is possible that the reaction to the unemployment and Nonfarm data will be totally illogical, just like the pair's entire movement in the last few weeks.

The trading signals were very weak. First, the pair rebounded twice from 1.0920, forming two sell signals. In the first case, it fell by 15 pips, in the second by 20. Thus, in both cases, traders had to place a Stop Loss at breakeven. These were used to close both positions. The last signal, which is a buy signal, hadn't even formed yet so there was no chance to use it. Consequently, there was no loss or profit on Thursday.

On the 30-minute chart, the pair has consolidated below the new uptrend line and... continues to trade higher. No matter what happens, no matter what signals are formed, in most cases, the euro will just rise. It falls precisely when the macroeconomic background supports its growth. This was the case on Monday and Tuesday and Wednesday. The fundamental and macroeconomic fundamentals are almost irrelevant now, but maybe the situation will change on Friday. On the 5-minute chart, it is recommended to trade at the levels 1.0692, 1.0737, 1.0792, 1.0857-1.0867, 1.0920-1.0933, 1.0966, 1.0989, 1.1038, 1.1070, 1.1132. As soon as the price passes 15 pips in the right direction, you should set a Stop Loss to breakeven. On Friday, the unemployment, payrolls and Nonfarm payrolls data will be released in the US. These are very important reports, which usually cause a strong market reaction. But it might be different on Friday, as the market is moving very illogically right now.

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.