Trading plan for EUR/USD on September 26. Simple tips for beginners

On Monday, EUR/USD was back on the downside as the fall resumed. Yesterday was quite dull in terms of economic and fundamental events. In general, traders could only pay attention to the speeches of European Central Bank officials de Cos and de Galhau, who, like many of their colleagues, stated that there was no need to continue tightening monetary policy. Take note that in case the rate is above 5% (as with the Bank of England and the Federal Reserve), such rhetoric from ECB officials would be quite logical and expected. However, the ECB's rate is much lower, and inflation is still too high to take a pause. Therefore, the euro continues to be under pressure, while the Fed, with a 5.5% rate, is still ready to continue raising it.

There was only one signal on the 5-minute chart, and it wasn't good. Unfortunately, it wasn't possible to catch when the euro started to fall. The signal was formed somewhere in the middle of the decline. Nevertheless, a breakout around 1.0607-1.0613-1.0618 could be used to open short positions. The subsequent decline was not strong, so it was only possible to earn about 10 pips. However, volatility was not exceptionally high on Monday.

On the 30-minute chart, EURUSD may try to correct higher again, but the euro still lacks robust bullish indicators. In the medium term, we anticipate the euro's further decline, and we are currently witnessing this process. Despite fully supporting the decline, it is also necessary for the pair to correct higher from time to time. But for now we are observing a downward movement. The key levels on the 5M chart are 1.0433, 1.0465, 1.0517-1.0533, 1.0607-1.0613-1.0618, 1.0673, 1.0733, 1.0767-1.0781, 1.0835, 1.0871. A stop loss can be set at a breakeven point as soon as the price moves 15 pips in the right direction. On Tuesday, European Central Bank Chief Economist Philip Lane is scheduled to speak. The US will release a report on new home sales. Obviously, neither the first nor the second event will have any impact on the pair's movement. It's clear that the euro is unlikely to find support today so everything will depend on the bears' appetite.

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.