Trading plan for EUR/USD on August 30. Simple tips for beginners

On Tuesday, EUR/USD tried to resume its downward movement but then it surged by 50-60 pips. There was no influential event or report in the first half of the day, but then the JOLTs report on the number of job openings in the US was released after the US opening bell. We mentioned this report and warned you that a significant deviation from the forecast might provoke a market reaction. The number of job openings on the last business day of July stood at 8.82 million, which came in below the market expectation of 9.46 million. Moreover, the previous month's figure was revised downwards. The dollar came under selling pressure with the immediate reaction. And this is just the first labor market report this week. If the following reports turn out to be the same, we can expect a much more significant drop in the greenback.

Therefore, it was challenging to determine our trend on the 30-minute timeframe (TF). On higher TFs, the answer is evident – it's downward. But there's a lot of important data this week, so the pair could rise.

Several trading signals were formed on the 5-minute chart. Initially, the pair bounced off the 1.0835 level, then it fell to the 1.0781 level, so beginners could earn about 30 pips. The bounce from the 1.0781 level was nothing less than a buy signal, and after its formation and the JOLTs report, the price rose to the 1.0871 level, so traders could earn 70 pips. On Tuesday, the level was executed nearly perfectly, though the movements themselves can't exactly be called ideal.

On the 30M chart, the pair extends its downward movement. From our perspective, the decline of the euro remains the most justified and logical course of action, irrespective of the macroeconomic backdrop. This week, we are looking forward to several reports, so this means that the pair can move in any direction. The euro may rise. The key levels on the 5M chart are 1.0673, 1.0733, 1.0767-1.0781, 1.0835, 1.0871, 1.0901-1.0904, 1.0936, 1.0971-1.0981. A stop loss can be set at a breakeven point as soon as the price moves 15 pips in the right direction. On Wednesday, Germany will release its inflation report for August, while the US will release its second quarter GDP in its second assessment, as well as the ADP report. Therefore, we might see some decent volatility.

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.