Trading plan for EUR/USD on July 5. Simple tips for beginners

The EUR/USD pair barely moved on Tuesday. However, this is not surprising, and we already warned you about this. US trading platforms were closed on Tuesday for the 4th of July holiday. The pair showed a volatility of 27 points. So basically, the price did not move all day. Therefore, there is nothing to analyze - the pair stayed in the same place where it was on Monday.

There were no economic reports or fundamental events even in the European Union. The pair crossed the descending trend line, but it failed to consolidate above the level of 1.0918, so the euro will continue to fall. We often say that signals of overcoming trend lines formed in a flat are likely to be false.

There was one signal on the 5-minute chart. Earlier in the night, the pair bounced off the level of 1.0918, after which it grudgingly moved down about 20 points. You could have ignored the signal, as we expected another low-volatility day. However, it was possible to enter the trade with the opening of the European session, but beginners did not make any profit or loss.

On the 30M chart, the pair has secured a position above the downward trend line, but failed to cross the 1.0918 level. So it's obvious that the pair is not going to rise further anytime soon. We are still in favor of the downtrend. Right now we still don't know which way the pair intends to move. You can simply dismiss Tuesday since there was no movement. The key levels on the 5M chart are 1.0733, 1.0761, 1.0803, 1.0857-1.0867, 1.0918-1.0918, 1.0971-1.0977, 1.1038, 1.1091, 1.1132. A stop loss can be set at a breakeven point as soon as the price moves 15 pips in the right direction. On Wednesday, the European Union and Germany will publish second estimates of services PMIs. Secondary data can hardly provoke a market response. The minutes of the Federal Reserve meeting will be released late in the evening, but by that time beginners should leave the market.

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.