empty
13.05.2025 05:59 AM
How to Trade the EUR/USD Pair on May 13? Simple Tips and Trade Analysis for Beginners

Analysis of Monday's Trades

1H Chart of EUR/USD

This image is no longer relevant

On Monday, the EUR/USD currency pair plunged. Traders have likely gotten used to the idea that the U.S. dollar can't show strong growth, but we had warned that the dollar would appreciate if the escalation of the trade war reversed course. On Monday, it was reported that China and the U.S. agreed to lower tariffs by 115% for 90 days. Naturally, this is not yet the end of the trade war, but it's a major step in that direction. To recap: earlier, Trump introduced a grace period for 75 countries during which 10% tariffs would apply, and later signed a trade deal with the UK. While none of these developments signal the complete end of the trade war, they indicate a truce and de-escalation. That's why the dollar is rising in response to these news headlines. All other factors still have a very limited influence on the pair's movement.

5M Chart of EUR/USD

This image is no longer relevant

On Monday, quite a few trade signals were generated on the 5-minute timeframe. The pair traded technically, providing plenty of opportunities for novice traders to open positions. In fact, not a single false signal was formed during the day. If traders worked through all of them, that would amount to five trades and a total profit of about 160 pips.

Trading Strategy for Tuesday:

On the hourly timeframe, EUR/USD has finally started to show signs of a downward trend. The market remains heavily biased against the U.S. dollar, but since Trump has now moved toward de-escalating the trade conflict he initiated, the greenback could significantly strengthen in the near term. The strength of the dollar's rally will depend on how many agreements are successfully signed.

On Tuesday, EUR/USD may continue its decline, as the news of a U.S.-China agreement is a strong, market-moving development. It favors the dollar, and the market cannot simply ignore it.

On the 5-minute timeframe, focus on the following levels: 1.0940–1.0952, 1.1011, 1.1091, 1.1132–1.1140, 1.1191–1.1198, 1.1275–1.1292, 1.1413–1.1424, 1.1474–1.1481, 1.1513, 1.1548, 1.1571, 1.1607–1.1622. There are no significant events in the Eurozone on Tuesday, while the U.S. will publish its April inflation report. While this is an important macro report, the market remains focused on the trade war, not on the Federal Reserve's monetary policy outlook at this time.

Core Trading System Rules:

  1. Signal Strength: The shorter the time it takes for a signal to form (a rebound or breakout), the stronger the signal.
  2. False Signals: If two or more trades near a level result in false signals, subsequent signals from that level should be ignored.
  3. Flat Markets: In flat conditions, pairs may generate many false signals or none at all. It's better to stop trading at the first signs of a flat market.
  4. Trading Hours: Open trades between the start of the European session and the middle of the US session, then manually close all trades.
  5. MACD Signals: On the hourly timeframe, trade MACD signals only during periods of good volatility and a clear trend confirmed by trendlines or trend channels.
  6. Close Levels: If two levels are too close (5–20 pips apart), treat them as a support or resistance zone.
  7. Stop Loss: Set a Stop Loss to breakeven after the price moves 15 pips in the desired direction.

Key Chart Elements:

Support and Resistance Levels: These are target levels for opening or closing positions and can also serve as points for placing Take Profit orders.

Red Lines: Channels or trendlines indicating the current trend and the preferred direction for trading.

MACD Indicator (14,22,3): A histogram and signal line used as a supplementary source of trading signals.

Important Events and Reports: Found in the economic calendar, these can heavily influence price movements. Exercise caution or exit the market during their release to avoid sharp reversals.

Forex trading beginners should remember that not every trade will be profitable. Developing a clear strategy and practicing proper money management are essential for long-term trading success.

Paolo Greco,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

How to Trade the GBP/USD Pair on May 23? Simple Tips and Trade Analysis for Beginners

Analysis of Thursday's Trades 1H Chart of GBP/USD The GBP/USD pair didn't even attempt a correction on Thursday. While the euro faced bearish pressure from weak business activity indices

Paolo Greco 05:58 2025-05-23 UTC+2

How to Trade the EUR/USD Pair on May 23? Simple Tips and Trade Analysis for Beginners

Analysis of Thursday's Trades 1H Chart of EUR/USD On Thursday, the EUR/USD currency pair corrected to the nearest support level on the hourly timeframe, which was at 1.1267. Multiple factors

Paolo Greco 05:57 2025-05-23 UTC+2

Trading Recommendations and Analysis for GBP/USD on May 23: Pound Prepares for a Historic Breakout

The GBP/USD currency pair broke out of its sideways channel through the upper boundary, but it is in no hurry to continue rising. Traders appear to be gathering momentum

Paolo Greco 03:43 2025-05-23 UTC+2

Trading Recommendations and Analysis for EUR/USD on May 23: The Euro Couldn't Withstand the Pressure

On Thursday, the EUR/USD currency pair traded lower, which can be considered an exception to the general trend. Nearly all macroeconomic reports during the day were unfavorable for the euro

Paolo Greco 03:43 2025-05-23 UTC+2

How to Trade the GBP/USD Pair on May 22? Simple Tips and Trade Analysis for Beginners

Analysis of Wednesday's Trades 1H Chart of GBP/USD The GBP/USD pair maintained its upward trend on Wednesday, a movement that has developed over the past two weeks. Recall that

Paolo Greco 06:31 2025-05-22 UTC+2

How to Trade the EUR/USD Pair on May 22? Simple Tips and Trade Analysis for Beginners

Analysis of Wednesday's Trades 1H Chart of EUR/USD On Wednesday, the EUR/USD currency pair continued its upward movement calmly and steadily. The price broke through the 1.1267 level, which

Paolo Greco 06:31 2025-05-22 UTC+2

Trading Recommendations and Analysis for GBP/USD on May 22: The Pound Breaks Through Key Levels

The GBP/USD currency pair also resumed its upward movement on Wednesday. The rise of the British pound, which in reality still reflects the fall of the US dollar, began overnight

Paolo Greco 03:30 2025-05-22 UTC+2

Trading Recommendations and Analysis for EUR/USD on May 22: Reasons Don't Matter and Aren't Needed

The EUR/USD currency pair resumed its upward movement on Wednesday, and it is now safe to say that the uptrend is present not only in the hourly timeframe but also

Paolo Greco 03:30 2025-05-22 UTC+2

How to Trade the GBP/USD Pair on May 21? Simple Tips and Trade Analysis for Beginners

Analysis of Tuesday's Trades 1H Chart of GBP/USD The GBP/USD pair mainly traded sideways on Tuesday, but early Wednesday morning it surged upward. On the 4-hour timeframe, it's clear that

Paolo Greco 06:17 2025-05-21 UTC+2

How to Trade the EUR/USD Pair on May 21? Simple Tips and Trade Analysis for Beginners

Analysis of Tuesday's Trades 1H Chart of EUR/USD On Tuesday, the EUR/USD currency pair traded sideways, but it resumed its upward movement early Wednesday morning. This indicates that the ongoing

Paolo Greco 06:17 2025-05-21 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.