InstaForex

September 3, 2021

Analysis and trading signals for beginners. How to trade EUR/USD on September 3? Analysis of Thursday trades. Getting ready for Friday session.

 The EUR/USD pair continued its upward movement on Thursday. Yet, it was another day when the pair added 25 pips while the overall volatility was just 36 pips. It can hardly be called a continuing upward movement. In fact, the euro/dollar pair keeps edging higher within a slow uptrend. And there is even an ascending channel here. However, the current movement is so weak that we still do not recommend following the signals from the MACD indicator. Even if they are formed properly, this does not guarantee profitable trades. This is because the indicator simply reacts to price changes. Therefore, by the time the signal is formed, the pair will have moved by 20-25 pips. Then, it will take the same time to make a reversal to exit the trade. If the total daily volatility does not exceed 40 pips, then it is almost impossible to make a profit on any trade and from any MACD signal. Besides, no major macroeconomic reports were released on Thursday. There was not a single important fundamental event as well. Therefore, novice traders had nothing to analyze today.


On the 5-minute time frame, EUR/USD pair has been moving upwards for the whole day and passed the distance of 25 pips. At the same time, three signals around 1.1851 were generated on Thursday. Theoretically, you can trade and gain profit on a 5-minute time frame even with minimal volatility. For example, today the first signal, which was being formed for a total of 5 hours, could be interpreted as a sell signal. It turned out to be false and resulted in a loss. However, this signal could have been ignored since it was far from being accurate or clear. But the next two signals were clear and accurate enough. The price first broke through the level of 1.1851 and then bounced off it, forming a buy signal. Thus, beginners could follow these two signals and open a buy trade. The price, however, failed to reach the nearest target level. Nevertheless, the trade closed with a profit of 5 pips later in the day. This is, of course, a very moderate result but amid low volatility, there is nothing else to expect.


Trading tips on Friday


On the 30-minute time frame, the EUR/USD pair continues to trade within an uptrend although it is very weak. Thus, we still do not recommend following buy signals from the MACD indicator and waiting for a more convincing trendline or a channel to form. On the 5-minute time frame, it is better to trade from the levels of 1.1831, 1.1851, 1.1880, and 1.1897. As usual, Take Profit should be set at 30-40 pips, while Stop Loss should be moved to breakeven as soon as the price passes 15 pips in the right direction. On the 5M chart, the target can be the nearest level unless if it is not too close or too far away. If it is, then you should act according to the situation. On Friday, both the European Union and the United States will publish a number of various reports. We recommend that novice traders pay close attention to these reports as markets may react strongly to them. It is worth focusing on manufacturing and services PMI in the US and the EU, the ISM index, the unemployment rate in the US, and NonFarm Payrolls. So, volatility may significantly increase tomorrow.