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FX.co ★ EUR/USD: Simple trading tips for beginner traders for June 20th (US session)

EUR/USD: Simple trading tips for beginner traders for June 20th (US session)

Analysis of transactions and tips on trading the European currency

The price test of 1.0727 in the first half of the day came at a time when the MACD indicator went down a lot to zero, so I did not sell the euro. I did not wait for any other entry points to the market. There are a lot of statistics in the afternoon. It all starts with data on the real estate market and ends with a report on the US labor market. The number of new foundations laid and the volume of construction permits issued are quite interesting indicators, and a strong discrepancy with forecasts will affect the direction of the pair. The weekly number of initial applications for unemployment benefits in the United States can also lead to a surge in volatility, but only if the indicator is beyond the average numbers. As for the intraday strategy, I plan to act based on the implementation of scenarios No. 1 and No. 2.

EUR/USD: Simple trading tips for beginner traders for June 20th (US session)

Buy signal

Scenario No. 1: today, I plan to buy euros when the price reaches 1.0741 (the green line on the chart) in order to grow to the level of 1.0780. At 1.0780, I will exit the market, as well as sell euros in the opposite direction, counting on a movement of 30-35 points from the entry point. The euro's upward movement today can only be counted on after very weak US data. Important! Before buying, make sure that the MACD indicator is above the zero mark and is just starting to grow from it.

Scenario No. 2: I also plan to buy euros today in the case of two consecutive price tests of 1.0724 at a time when the MACD indicator will be in the oversold area. This will limit the pair's downward potential and lead to an upward reversal of the market. We can expect an increase to the opposite levels of 1.0741 and 1.0780.

Sell signal

Scenario No. 1: I will sell euros after reaching the level of 1.0724 (the red line on the chart). The target will be the 1.0687 level. I plan to exit the market and buy euros immediately in the opposite direction (counting on a movement of 20-25 points in the opposite direction from the level). The pressure on the pair will return in case of strong US statistics. Important! Before selling, make sure that the MACD indicator is below the zero mark and is just beginning to decline.

Scenario No. 2: I also plan to sell euros today in the case of two consecutive price tests of 1.0741 at a time when the MACD indicator will be in the overbought area. This will limit the upward potential of the pair and lead to a downward reversal of the market. We can expect a decline to the opposite level of 1.0724 and 1.0687.

EUR/USD: Simple trading tips for beginner traders for June 20th (US session)

What's on the chart:

  • The thin green line is the entry price at which you can buy a trading instrument.
  • The thick green line is the estimated price where you can place Take profit or fix profits yourself, since further growth is unlikely above this level.
  • The thin red line is the entry price at which a trading instrument can be sold.
  • The thick red line is the estimated price where you can place Take profit or fix profits yourself since further decline is unlikely below this level.
  • The MACD indicator. When entering the market, it is important to be guided by overbought and oversold zones.

Important. Novice forex traders need to make decisions about entering the market very carefully. Before the release of important fundamental reports, it is best to stay out of the market to avoid sharp fluctuations in the exchange rate. If you decide to trade during the news release, always place stop orders to minimize losses. You need to place stop orders to lose your entire deposit quickly, especially if you do not use money management but trade in large volumes.

Remember that for successful trading, it is necessary to have a clear trading plan, following the example I presented above. Making spontaneous trading decisions based on the current market situation is an inherently 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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