How to trade EUR/USD on May 30. Simple trading tips and analysis for beginners

On Monday, EUR/USD moved with a volatility of 38 pips. In general, we didn't see any significant movements. The pair tried to fall in the first half of the day, and then it eventually stood still in the second half. There were no reports or fundamental events. The only news was that Democrats and Republicans in the US agreed to raise the debt ceiling, but this information emerged over the weekend and had no impact on the pair's movement. It was also a holiday in the US, which explains the complete lack of movement during the US trading session. Overall, there is simply nothing to analyze.

The 5M chart shows how weak the movement was on Monday. If earlier we mentioned low volatility, referring to how difficult it is to trade when there are weak movements, on Monday, there were essentially no movements at all. By the middle of the European trading session, the pair dropped to the level of 1.0715, but in a completely flat market, levels do not play any role. Therefore, beginners should not have entered the market.

As seen on the 30M chart, the pair is still trading lower. The bearish trend has been developing for 2 weeks already, which totally matches our expectations. In the nearest future, the upward correction is likely to start, though the descending channel still indicates continuation of the downtrend. The US dollar is rising quite logically. A few days of flat conditions may take the pair out of the channel, but in that case, the downtrend has not necessarily come to an end. The key levels on the 5M chart are 1.0607-1.0613, 1.0715, 1.0761, 1.0792, 1.0857-1.0867, 1.0918-1.0933. A stop loss can be set at a breakeven point as soon as the price moves 15 pips in the right direction. There are no significant events scheduled in the eurozone or the US. Volatility may be even lower than usual, and we shouldn't expect significant intraday trending movement.

1) The strength of the signal depends on the time period during which the signal was formed (a rebound or a break). The shorter this period, the stronger the signal.

2) If two or more trades were opened at some level following false signals, i.e. those signals that did not lead the price to Take Profit level or the nearest target levels, then any consequent signals near this level should be ignored.

3) During the flat trend, any currency pair may form a lot of false signals or do not produce any signals at all. In any case, the flat trend is not the best condition for trading.

4) Trades are opened in the time period between the beginning of the European session and until the middle of the American one when all deals should be closed manually.

5) We can pay attention to the MACD signals in the 30M time frame only if there is good volatility and a definite trend confirmed by a trend line or a trend channel.

6) If two key levels are too close to each other (about 5-15 pips), then this is a support or resistance area.

Support and Resistance price levels can serve as targets when buying or selling. You can place Take Profit levels near them.

Red lines are channels or trend lines that display the current trend and show which direction is better to trade.

MACD indicator (14,22,3) is a histogram and a signal line showing when it is better to enter the market when they cross. This indicator is better to be used in combination with trend channels or trend lines.

Important speeches and reports that are always reflected in the economic calendars can greatly influence the movement of a currency pair. Therefore, during such events, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement.

Beginners should remember that every trade cannot be profitable. The development of a reliable strategy and money management are the key to success in trading over a long period of time.