Trading plan for EUR/USD on September 12. Simple tips for beginners

EUR/USD showed a slight bullish bias on Monday, which started on Friday. The descending trendline has been broken, albeit within a flat, but the pair is still correcting higher. However, the corrective movement has been weak and could end at any moment. There were no significant events in either the European Union or the US. Volatility is quite low given the current fundamental and macroeconomic background, but this won't be the case throughout the week. On Wednesday, we can look forward to the US inflation report, and on Thursday, the European Central Bank meeting. Therefore, the pair will become more active; the question is which currency will benefit from it. We expect a bullish correction since the price has been falling for a month and a half, but we believe that the downtrend will persist in the medium term.

On the 5-minute chart, the pair experienced a flat phase during the European session. The 1.0733 level had no meaning, and no level would have if the market was flat. Formally, the price bounced off this level a few times, but there was no opportunity to make profit from these signals and even set a stop loss at breakeven for short positions. Therefore, this position would have resulted in a small loss. During the US session, the price climbed above the 1.0733 level and managed to rise by about 10-15 pips. Since there were no trading signals by the end of the day, the trade had to be closed manually. The profit from it could cover the loss from the first trade.

The trend has temporarily ended on the 30-minute chart, and a corrective phase has begun. Despite breaking the trendline, the euro doesn't have any strong bullish factors it can use. A continued bearish movement is anticipated. Medium-term projections are aligned with this trend, irrespective of the macroeconomic and fundamental backdrop. However, this week's background will be strong enough, so a bullish correction is possible. The key levels on the 5M chart are 1.0517-1.0533, 1.0607-1.0613, 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 Tuesday, traders may look to the release of the German and EU ZEW Economic Sentiment for some impetus. In theory, the reports could provoke a small market reaction, but we wouldn't count on it. Most likely, we should brace ourselves for another low-volatility day.

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.