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FX.co ★ EUR/USD: Simple trading tips for beginners on June 6th (US session)

EUR/USD: Simple trading tips for beginners on June 6th (US session)

Analysis of Trades and Tips for Trading the Euro

The price test at 1.0870 occurred when the MACD indicator had already moved significantly below the zero mark, limiting the pair's further downside potential—especially before the important European Central Bank decision on interest rates. For this reason, I did not sell the euro. I expect a sharp and directed movement in the second half of the day, so I will act on level breakouts, ignoring the MACD indicator. Besides the ECB decision, the US initial jobless claims and trade balance figures have also been released, which could impact the market, but not today. I plan to act based on Scenario No. 1 regarding the intraday strategy.

EUR/USD: Simple trading tips for beginners on June 6th (US session)

Buy Signal

Scenario No. 1: Today, I plan to buy the euro when the price reaches around 1.0885 (green line on the chart), with the target of rising to 1.0971. At 1.0971, I will exit the market and sell the euro in the opposite direction, aiming for a 30-35 pip movement from the entry point. An upward movement in the euro today can only be expected following a strong ECB stance. Important! Before buying, ensure that the MACD indicator is above the zero mark and starting to rise.

Scenario No. 2: I also plan to buy the euro today in case of two consecutive tests of the 1.0860 price when the MACD indicator is in the oversold area. This will limit the pair's downside potential and lead to an upward market reversal. You can expect a rise to the opposite levels of 1.0885 and 1.0971.

Sell Signal

Scenario No. 1: I will sell the euro after reaching the 1.0860 level (red line on the chart). The target will be 1.0770, where I plan to exit the market and buy the euro immediately in the opposite direction (aiming for a 20-25 pip movement in the opposite direction from the level). Pressure on the pair will return in case of strong US statistics and a soft ECB stance on rates. Important! Before selling, ensure that the MACD indicator is below the zero mark and starting to decline.

Scenario No. 2: I also plan to sell the euro today in case of two consecutive tests of the 1.0885 price when the MACD indicator is in the overbought area. This will limit the pair's upside potential and lead to a downward market reversal. You can expect a decline to the opposite levels of 1.0860 and 1.0770.

EUR/USD: Simple trading tips for beginners on June 6th (US session)

Chart Explanation:

  • Thin green line: Entry price for buying the trading instrument.
  • Thick green line: Estimated price for setting Take Profit or manually fixing profits, as further growth above this level is unlikely.
  • Thin red line: Entry price for selling the trading instrument.
  • Thick red line: Estimated price for setting Take Profit or manually fixing profits, as further decline below this level is unlikely.
  • MACD Indicator: When entering the market, it is important to consider overbought and oversold zones.

Important Note: Beginner traders in the forex market must carefully make entry decisions. Before important fundamental reports are released, staying out of the market is best to avoid sudden price fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. You can quickly lose your entire deposit without stop orders, especially if you do not use money management and trade in large volumes.

Remember, successful trading requires a clear plan, like the one I presented above. Making spontaneous trading decisions based on the current market situation is a losing strategy for an intraday trader.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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