How to trade EUR/USD on April 26. Simple trading tips and analysis for beginners

The EUR/USD pair started quite a strong and unexpected movement on Tuesday. However, all the movements in recent weeks and even months can hardly be considered as logical or justified. On Tuesday, the pair grew due to a dubious speech by Pierre Wunsch, and on Tuesday, it fell on an equally dodgy speech by Philip Lane. The question arises, did the market react to these speeches at all or it just continues to trade according to its own logic? We are more inclined to believe that the absolutely illogical movements persist. There weren't any macroeconomic events on Monday or Tuesday, and there was not a single clear fundamental event. Therefore, the market could trade as it pleases. It could buy, sell, or do nothing at all, as it did last week. The pair is being thrown from side to side and then it gets stuck in a flat. There is no trend, trend line, or logic now.

Several trading signals were formed on the 5-minute chart. As the pair moved in a trend almost all day, the signals were quite good. Two sell signals were formed around 1.1038 during the European trading session, which duplicated each other. They should have been worked out with one short position. After that, the price began a rather strong decline and overcame the 1.0980-1.1000 area. There were no buy signals until the evening, so the position should have been closed manually, with a profit of about 60 points.

On the 30-minute chart, the pair left the flat and is now "aiming" for growth. I have already mentioned several times that the upward movement has no basis, and I'm sticking to that opinion. However, the pair is not growing or falling now, and the movements are absolutely illogical. The pair can stand still for a week and then show "swings" with an empty fundamental and macroeconomic background. On the 5-minute chart, consider levels 1.0792, 1.0857-1.0867, 1.0920-1.0933, 1.0980-1.1000, 1.1038, 1.1070, 1.1132, 1.1184, 1.1228. As soon as the price passes 15 pips in the right direction, you should set a Stop Loss to breakeven. On Wednesday, the only report of the day will be the report on durable goods orders in the US. We do not consider it important, but now the market is trading without any logic, so it can also work. It is quite easy to predict the pair's movements now - take the least likely option and choose it.

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.