Analytics and trading signals for beginners. How to trade EUR/USD on May 7? Analysis of Thursday. Getting ready for Friday - Kakiforex.com - Financial Market Media No. 1 in the World Analytics and trading signals for beginners. How to trade EUR/USD on May 7? Analysis of Thursday. Getting ready for Friday Analytics and trading signals for beginners. How to trade EUR/USD on May 7? Analysis of Thursday. Getting ready for Friday
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May 7, 2021

Analytics and trading signals for beginners. How to trade EUR/USD on May 7? Analysis of Thursday. Getting ready for Friday

 The EUR/USD pair traded much better on Thursday than it did on Wednesday or Tuesday. The most important thing is that the euro/dollar pair continued to stay between the two trend lines at night trading, and it settled above the descending trend line at the beginning of the European trading session, thereby forming a buy signal. This signal made it possible for novice traders to earn around 30 points of profit, as the price reached the nearest level of 1.2056, and the transaction could close at Take Profit, which we also recommend placing at a distance of 30-40 points from the entry point. According to the signals of the MACD indicator, it was not advisable to trade until one of the trend lines is broken. And after this moment, long positions became relevant, but not a single buy signal from the MACD was formed. And so we now have a rising trend again, so tomorrow and in the following days before the pair settles below the rising trend line, it is recommended to consider buy signals from the MACD.


Now let's take a look at the 5 minute timeframe. Here the picture, as usual, is much more interesting and requires careful analysis. The most important thing to take note of right away is that the buy signal on the 30-minute timeframe and the first buy signal on the 5-minute timeframe almost perfectly coincide in time. Thus, in any case, long positions should have been opened at this time point. But since the 30-minute timeframe is still more important and the long position remained open there for a long period of time (it was closed near the level of 1.2056), then you should ignore all signals at 5M before the price hit the level of 1.2056. There was neither a clear breakthrough, nor a clear rebound from the level of 1.2056. In a few hours, the price has overcome this level 5 or 6 times, so, of course, it was not worth opening any positions here at all. In principle, from the first two breakthroughs of the level of 1.2056, it was already possible to understand that a clear signal would not be formed near it. The pair eventually hit the level of 1.2044 again, but it was also not necessary to open new longs at the end of the working day, and even dangerously close to the level of 1.2056, around which the pair lingered in for several hours. As a result, the same buy signal should have been processed on both timeframes. As for macroeconomic statistics, the first tick in the chart marks the time of the release of the report on retail sales in the EU, which turned out to be stronger than forecasted and helped the euro to continue growing by another 15-20 points. The second tick marks the beginning of European Central Bank President Christine Lagarde's speech, who did not report anything interesting to the markets. The third tick is the report on claims for unemployment benefits in the US, which turned out to be better than forecasted, as the claims in reality turned out to be less than expected. There was no reaction at all to this report.


Trading tips for Friday:


On Friday, novice traders already have a clear trend on the 30-minute timeframe, therefore, you should consider buy signals from the MACD indicator. To do this, you need to wait until it is discharged to the zero level, that is, the correction would reverse, which may just happen at night. On a 5-minute timeframe, it is recommended to trade from the levels of 1.2027, 1.2044, 1.2076 and 1.2092 for a rebound or overcoming in both directions. We will ignore the level of 1.2056 for now. Take Profit, as before, is set at a distance of 30-40 points at 30M. Stop Loss - to breakeven when the price passes in the right direction by 15-20 points. The target at the 5M TF is the closest level, if it is not too close or too far away. Recall that it is best to trade using the most accurate and clear signals, and that you should ignore inaccurate ones. Lagarde is set to give another speech on Friday, and very important reports on the unemployment rate and the number of new jobs created outside the agricultural sector will be published in the US.