FX.co ★ Trading plan for EUR/USD on July 10. Simple tips for beginners

Analyzing Friday's trades:

EUR/USD on 30M chart

The EUR/USD pair traded more actively on Friday than for most of the week. On Friday, the US released Non-Farms and unemployment figures - without exaggeration, some of the most important reports at this time. Recall that in recent months, many experts and analysts have been "burying" the American economy, predicting a recession, rising unemployment, and labor market problems for it. However, this moment of collapse never comes. On Friday, the US dollar fell, but from our point of view, it fell undeservedly again. However, the day before, we said that the dollar is not predisposed to grow right now, and the market can find any reason to sell it, not to buy it.

Industrial production in Germany fell again, but this moment just did not upset the market at all. The euro appreciated almost all day. It's not a fact that it will continue to rise next week, as the euro also has few good reasons to grow right now.

EUR/USD on 5M chart

A sufficient number of trading signals materialized in the 5-minute chart. During the European trading session, the pair initially rebounded from the 1.0901 level, and then - from 1.0871. Thus, beginners received at least two signals, each of which brought about 15 points of profit. Before the release of US data, it was reasonable to leave the market, as movements could be unpredictable. It was possible to execute a trade using the rebound from the 1.0901 level when the initial emotions passed. The Non-Farm report turned out to be slightly worse than forecasts, so the pair had formal reasons to grow. Subsequently, the price reached the level of 1.0971, bringing about 50 more points of profit.

Trading tips on Monday:

On the 30M chart, the pair has secured a position above the downward trend line, but managed to cross the 1.0932 level on Friday on strong news. So it's obvious that the pair is not going to rise further anytime soon. We are still in favor of the downtrend. The key levels on the 5M chart are 1.0733, 1.0761, 1.0835, 1.0871, 1.0901, 1.0932, 1.0971-1.0977, 1.1038, 1.1091, 1.1132. A stop loss can be set at a breakeven point as soon as the price moves 15 pips in the right direction. On Monday, no economic reports lined up in the European Union or the United States. Several representatives of the Fed's monetary committee will deliver a speech, which can be interesting, but that's it, as the market now clearly understands what to expect from the US central bank.

Basic trading rules:

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.

How to read charts:

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.