empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

04.10.202120:48 Forex Analysis & Reviews: How to trade EUR/USD on October 5? Simple advices for newbies

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Let us take a look at the pair's movement on Monday:

EUR/USD, 30M

Exchange Rates 04.10.2021 analysis

On Monday, the euro/dollar pair was not very active, but its dynamic was not as sluggish as usual. In one day, it changed by 50 points, thus allowing beginning traders to open positions and make a profit. During the day, the pair broke the downward trend line. That is why the downward movement stopped.

Now, the pair may continue rising. The MACD indicator did not provide any sell signal. What is more, the macroeconomic calendar was almost empty. Notably, the increase is really weak and is considered a correctional movement. During the last three trading days, the pair grew just by 60 pips. Thus, newbies should understand that the pair's dynamic is sluggish.

EUR/USD, 5M

Exchange Rates 04.10.2021 analysis

On the 5-minute chart, the technical picture was glooming. Only one sell signal was formed during the day. However, it was quite successful. After the signal formation, the pair climbed by 30 pips, which was enough for the execution of the take profit order placed 30 pips higher from the entering point. The signal was formed when the price went above the level of 1.1603. The price was rising almost all day, but the potential was very weak.

How to trade on Tuesday:

On the 30-minute chart, the euro/dollar pair broke the downward trend line. It means that it may resume gaining in value. Since the dynamic is weak, we do not recommend taking into account the signals from the MACD indicator. On the five-minute chart, the key levels are located at 1.1571, 1.1603, 1.1666, and 1.1685. A take profit order should be placed 30-40 pips higher from the entering point. On the five-minute chart, the target could be located at the nearest level. On Tuesday, the eurozone will report on its services PMI. The US will also publish the ISM services PMI data. The market is likely to show a reaction to the second report, but it will hardly be strong.

Let us focus on the trading charts:

Support and resistance levels are targets that we indicate when opening sell or buy positions. It is possible to place a take profit order near them.

Red lines are channels or trend lines that reflect the current trend and provide sell or buy signals.

MACD indicator is a signal line. When a price crosses the line, we receive a signal to enter the market. It is recommended to use it together with trend formations (channels, trend lines).

Speeches of politicians and reports (reflected in the trader's calendar) may significantly affect the market. That is why it is recommended to be cautious at the moment of publication. Sometimes, it is better to leave the market to avoid a sharp price reversal.

Beginning traders should remember that not every trade brings profit. A clear strategy and money management is the key to long-term success.

Paolo Greco
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off