FX.co ★ EUR/USD: Simple trading tips for beginner traders on June 7th (US session)

Analysis of Trades and Trading Tips for the Euro

There were no tests of the levels I outlined earlier in the day. Low volatility ahead of key US statistics was the main reason. A series of reports on changes in non-farm payrolls for May, the unemployment rate, and changes in average hourly earnings are scheduled. A drop in new jobs and a sharp slowdown in wage growth will lead to a fall in the dollar and a sharp strengthening of the euro. If the opposite happens, one can confidently buy the dollar and bet on a decline in the pair by the end of the week. Regarding the intraday strategy, I plan to act based on the implementation of Scenario No. 1 without paying attention to the MACD indicator readings.

Buy Signal

Scenario No. 1: Today, I plan to buy the euro upon reaching the price of around 1.0901 (green line on the chart) with the target of rising to the level of 1.0942. At 1.0942, I will exit the market and sell the euro in the opposite direction, aiming for a 30-35 point move from the entry point. An upward movement in the euro today can be expected only with weak US labor market data. Important! Before buying, make sure the MACD indicator is above the zero mark and just starting to rise from it.

Scenario No. 2: I also plan to buy the euro today in case of two consecutive tests of the price at 1.0881 when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a market reversal upwards. Growth to the opposite levels of 1.0901 and 1.0942 can be expected.

Sell Signal

Scenario No. 1: I will sell the euro after reaching the level of 1.0881 (red line on the chart). The target will be the level of 1.0830, where I plan to exit the market and buy the euro immediately in the opposite direction (expecting a 20-25 point move from the level). Pressure on the pair will return in case of strong US statistics. Important! Before selling, make sure the MACD indicator is below the zero mark and just starting to decline from it.

Scenario No. 2: I also plan to sell the euro today in case of two consecutive tests of the price at 1.0901 when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downwards. A decline to the opposite levels of 1.0881 and 1.0830 can be expected.

Chart Explanation:

• Thin Green Line: Entry price at which you can buy the trading instrument.
• Thick Green Line: Estimated price where you can set Take Profit or independently fix profits, as further growth above this level is unlikely.
• Thin Red Line: Entry price at which you can sell the trading instrument.
• Thick Red Line: Estimated price where you can set Take Profit or independently fix profits, as further decline below this level is unlikely.
• MACD Indicator: When entering the market, it is important to be guided by overbought and oversold zones.

Important: Beginner forex traders should be very cautious when making market entry decisions. It is best to stay out of the market before the release of important fundamental reports to avoid getting caught in sharp price swings. If you decide to trade during news releases, always set stop orders to minimize losses. Without stop orders, you can quickly lose your entire deposit, especially if you don't use money management and trade large volumes.

And remember, successful trading requires a clear trading plan, like the one presented above. Spontaneous trading decisions based on the current market situation are inherently a losing strategy for an intraday trader.