FX.co ★ How to trade EUR/USD on December 15. Simple trading tips and analysis for beginners

Analyzing Wednesday's trades:

EUR/USD on 30M chart

EUR/USD traded as if there were no important events this week. On the one hand, its behavior is quite logical, because the market had time to work off the US inflation report, and there is only one event on Wednesday, which is the Fed meeting. Thus, traders really had nothing to react to during the day. So the 50-point volatility makes sense, though it is extremely weak. The inflation report caused the dollar to fall for literally half an hour. Then the market returned to its sluggish state. We could see the same situation again. I have already mentioned that on Wednesday, traders, trading intraday, will have to leave the market till the evening. You can place a Stop Loss on the last opened position because the pair can rush practically in any direction. It is necessary to protect yourself from potential losses.

EUR/USD on M5 chart

Speaking of trading signals, they were quite bad due to very weak volatility. It is very difficult to expect profit when the pair makes only 50 pips during the day. Nevertheless, the first sell signal near 1.0636 turned out to be false, and the pair managed to move down just 10 pips. There was a loss on this transaction. The next buy signal near the same level turned out to be correct, the price managed to reach the nearest target level of 1.0663, which resulted in profit worth 10 pips. The sell signal near 1.0663 also turned out to be correct and the price fell to 1.0636, which gave another 10 pips profit. The last buy signal near 1.0636 could be worked out, but now it is necessary to set a Stop Loss, if beginners intend to wait for the results of the US central bank meeting and Federal Reserve Chairman Jerome Powell's speech. You can earn 100 points if we see a favorable outcome. But if the situation is unfavorable, a Stop Loss will be triggered.

Trading tips on Thursday:

The pair is moving up on the 30-minute chart due to the latest US inflation report. Thus, there is still no trend line or channel, but the pair may go up another 200-300 pips this week, in quite a calm manner. It may also drop the same amount. On the 5-minutes chart on Thursday, it is recommended to trade on the levels 1.0465-1.0483, 1.0535, 1.0582-1.0607, 1.0636, 1.0663, 1.0697, 1.0765, 1.0787, 1.0806. As soon as the price passes 15 pips in the right direction, you should set a Stop Loss to breakeven. On Thursday, the results of the European Central Bank meeting will be announced in the European Union, which is also very important and interesting. But in the morning, the market may continue to work out the results of the Fed meeting, keep that in mind. In America, there will be reports on industrial production and retail sales but they will probably be overshadowed by the outcome of the Fed and ECB meetings.

Basic rules of the trading system:

1) The strength of the signal is determined by the time it took the signal to form (a rebound or a breakout of the level). The quicker it is formed, the stronger the signal is.

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

3) When trading flat, a pair can form multiple false signals or not form them at all. In any case, it is better to stop trading at the first sign of a flat movement.

4) Trades should be opened in the period between the start of the European session and the middle of the US trading hours when all positions must be closed manually.

5) You can trade using signals from the MACD indicator on the 30-minute time frame only amid strong volatility and a clear trend that should be confirmed by a trendline or a trend channel.

6) If two levels are located too close to each other (from 5 to 15 pips), they should be considered support and resistance levels.

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 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, and 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 patterns (channels and trendlines).

Important announcements and economic reports that can be found on the economic calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommend trading as carefully as possible or exiting the market in order to avoid sharp price fluctuations.

Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management is the key to success in trading over a long period of time.