06.09.202121:42 Forex Analysis & Reviews: How to trade EUR/USD on September 7? Trading tips for beginners

Analysis of Monday trades

EUR/USD on 30M chart

On Monday, the EUR/USD pair extended its correction from Friday, while remaining inside the ascending channel. Thus, the uptrend was in place. A rebound of the price from the level of 1.1851 or the lower boundary of the channel could prompt the resumption of the upward movement. In general, the movements of the pair were extremely weak. On Friday, when both the US and EU were full of economic reports, the pair moved by only 44 pips. On Monday, when the economic calendar was almost empty, EUR/USD passed the distance of 31 pips. This means that volatility remains extremely low. On the 30-minute timeframe, not a single trading signal was generated on Monday since the MACD indicator was much below the zero level for the whole day, and the price was unable to test any important level or line.

EUR/USD on 5M chart

On the 5-minute time frame, the situation looks even more boring.Throughout the day, the quotes did not even approach any of the levels around which a trading signal could be formed. We should keep in mind that there are more levels on the 5-minute TF, so the chances of forming a signal are much higher. For example, the previous highs and lows are taken into account here. However, even under this condition, the pair failed to test a single level on Monday and did not form any signal. Thus, novice traders had their third day off in a row today. It is far from certain that the situation will change tomorrow as volatility remains extremely low. Therefore, on Tuesday, the quotes may also move with minimal volatility and mostly sideways. We would like to remind beginners that it is better when no signals are formed amid such a slow movement as this protects them against losses from false signals. And since this is a weak and sideways movement, it is extremely difficult to profit from it.

Trading tips on Tuesday

On the 30-minute timeframe, the EUR/USD is still moving within an uptrend which is very weak. We still do not recommend following buy signals from the MACD indicator. Besides, waiting for a more convincing trendline or a channel to be formed or a strong movement to start is also not a good idea. On the 5-minute timeframe, it is better to trade from the levels of 1.1831, 1.1851, 1.1880, and 1.1908. As usual, Take Profit should be set at 30-40 pips, while Stop Loss should be moved to breakeven when the price passes 15 pips in the right direction. On the 5-minute time frame, the target can be the nearest level if it is not too close or too far away. If it is, then you should act according to the situation. There are no major publications or events scheduled in the US on Tuesday. The European Union will publish a report on GDP which is unlikely to influence the pair in the European trading session. Tuesday seems to be another boring day with slow price movements.

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 trendlines 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 you can always find 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 exit 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 are the key to success in trading over a long period of time.