18.10.202409:05 Forex Analysis & Reviews: EURUSD: Simple Trading Tips for Novice Traders on October 18. Review of Yesterday's Forex Trades

Analysis of Trades and Trading Tips for the Euro

The test of the 1.0847 level occurred when the MACD indicator had just started moving downward from the zero mark, confirming a good entry point for selling the euro. As a result, the pair fell by more than 35 pips, though it didn't quite reach the target level of 1.0810. The pressure on the euro was driven by the remarks from the European Central Bank President, Christine Lagarde, expressing concerns about the slowdown in European economic growth. Today, the only data point we have in the first half of the day is the ECB's current account balance. Therefore, there are no significant reasons to buy the euro—especially considering yesterday's hints at further aggressive rate cuts from the ECB. As for the intraday strategy, I will rely more on implementing scenarios #1 and #2.

Buy Signal

Scenario #1:

Today, I plan to buy the euro if the price reaches around 1.0851 (green line on the chart), with a target of 1.0874. At 1.0874, I plan to exit the market and sell the euro in the opposite direction, aiming for a move of 30-35 pips from the entry point. Today, the euro's growth in the first half of the day can only be expected as part of a correction. Important: Before buying, ensure that the MACD indicator is above the zero mark and starting to rise.

Scenario #2:

I also plan to buy the euro today if there are two consecutive tests of the 1.0834 level when the MACD indicator is in the oversold area. This will limit the pair's downward potential and may lead to a reversal to the upside. Growth can be expected toward the opposite levels of 1.0851 and 1.0874.

Sell Signal

Scenario #1:

I plan to sell the euro after it reaches the 1.0834 level (red line on the chart). The target will be the 1.0810 level, where I plan to exit the market and immediately buy in the opposite direction (aiming for a move of 20-25 pips in the opposite direction). Pressure on the pair can return today, as there are many reasons. Important: Before selling, ensure that the MACD indicator is below the zero mark and starting to decline.

Scenario #2:

I also plan to sell the euro today if there are two consecutive tests of the 1.0851 level when the MACD indicator is in the overbought area. This will limit the pair's upward potential and may lead to a reversal downward. A decline can be expected toward the opposite levels of 1.0834 and 1.0810.

What's on the chart:

Thin green line – the entry price to buy the trading instrument;

Thick green line – the approximate price to set Take Profit or manually lock in profits, as further growth above this level is unlikely;

Thin red line – the entry price to sell the trading instrument;

Thick red line – the approximate price to set Take Profit or manually lock in profits, as further declines below this level are unlikely;

MACD indicator – When entering the market, it's important to use overbought and oversold zones.

Important:

Novice traders in the Forex market should be cautious when making entry decisions. It's best to stay out of the market before the release of major fundamental reports to avoid sharp price fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. You can quickly lose your entire deposit without stop orders, especially if you don't practice money management and trade with large volumes.

And remember, successful trading requires a clear trading plan, like the one presented above. Spontaneous decision-making based on the current market situation is a losing strategy for intraday traders.