FX.co ★ How to trade EUR/USD on September 9? Simple tips for beginners.

Analysis of Thursday's deals:

30M chart of the EUR/USD pair

The EUR/USD currency pair traded very logically on Thursday. At first glance, it may seem that this is not so, but we will now analyze all the movements in detail. The first thing to note is the rebound from the 1.0020 level. It was after this rebound that the main movement of the pair began. The second thing to note is that the pair is still inside the 0.9877-1.0072 horizontal channel, and it has been trading inside it for more than three weeks. The channel is not the narrowest, but it is what it is. Thirdly, the price has settled above the descending trend line, but this does not mean that an upward trend will now begin - the pair is still inside the horizontal channel. The key event of the day was the European Central Bank meeting, where it was decided to raise the key rate by 0.75%. Such an increase can be considered an "all-time record" for the ECB, but after this decision the euro began to fall, not grow. Recall that the tightening of monetary policy is a positive factor for the currency, whose issuing bank raises the rate. Today, however, we saw the opposite picture. However, we warned in recent articles that there could be any reaction to the results of the central bank meeting.

5M chart of the EUR/USD pair

You can clearly see on the 5-minute timeframe that the pair managed to "fly" from side to side. Not a single signal was formed during the European trading session. Signals began to form with the beginning of the US session, or rather, when the results of the ECB meeting were announced and the speeches of Lagarde and Powell began. Given such a strong fundamental background, novice traders could not risk opening deals, since the pair could move in any direction with any strength. Nevertheless, two bounces from the 1.0020 level, and fairly accurate bounces, could still sway the newcomers in favor of the decision to open a short position. Subsequently, the price fell and bounced twice from the 0.9952 level. Short positions should have been closed near it. In the first case, one could also open longs. The price went up 15 points, so Stop Loss should have been placed at breakeven on the trade. Therefore, there could be no loss on this position in principle. This means that novice traders could complete the day with a profit of about 40 points.

How to trade on Friday:

The pair continues to gravitate toward a downward movement on the 30-minute timeframe, but at the same time remains inside the horizontal channel, which we talked about above. We believe that the downward trend will resume sooner or later, because even the ECB rate hike by 0.75% did not help the euro. Consequently, the market is now absolutely not set to buy the single currency. But 20-year lows should be traded with caution anyway. On the 5-minute TF on Friday, it is recommended to trade at the levels of 0.9877, 0.9910, 0.9952, 1.0020-1.0034, 1.0072, 1.0123. When passing 15 points in the right direction, you should set Stop Loss to breakeven. Not a single important or simply interesting event is planned for Friday in the European Union and the United States. However, the market may continue to work out the results of the ECB meeting, so the volatility may be quite high. However, the horizontal channel is important for the euro now, in which the trades continue to take place.

Basic rules of the trading system:

1) The signal strength is calculated by the time it took to form the signal (bounce or overcome the level). The less time it took, the stronger the signal.

2) If two or more deals were opened near a certain level based on false signals (which did not trigger Take Profit or the nearest target level), then all subsequent signals from this level should be ignored.

3) In a flat, any pair can form a lot of false signals or not form them at all. But in any case, at the first signs of a flat, it is better to stop trading.

4) Trade deals are opened in the time period between the beginning of the European session and until the middle of the US one, when all deals must be closed manually.

5) On the 30-minute TF, using signals from the MACD indicator, you can trade only if there is good volatility and a trend, which is confirmed by a trend line or a trend channel.

6) If two levels are located too close to each other (from 5 to 15 points), then they should be considered as an area of support or resistance.

On the chart:

Support and Resistance Levels are the Levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.

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

The MACD indicator (14,22,3) consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend lines (channels and trend lines).

Important speeches and reports (always contained in the news calendar) can greatly influence the movement of a currency pair. Therefore, during their exit, 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 on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time.