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

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

EUR/USD, 30M

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

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.