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14.10.202415:38 Forex Analysis & Reviews: EUR/USD: Simple Trading Tips for Beginner Traders on October 14th (U.S. Session)

Analysis of trades and tips for trading the euro

Unfortunately, due to ultra-low volatility, even lower than last Friday, we did not reach the designated price levels. As a result, none of the conditions for market entry were met. The lack of statistical data was the main reason for the sluggish market. This trend will likely continue in the second half of the day, so I do not expect significant directional movements. Apart from the speeches by Federal Reserve officials, which were plentiful last week, there are no other significant statistics from the U.S. today. For the intraday strategy, I plan to follow the scenarios outlined in Scenario #2.

Exchange Rates 14.10.2024 analysis

Buy Signal

Scenario #1: Today, I plan to buy the euro if the price reaches the area around 1.0943 (the green line on the chart), with a target of rising to the level of 1.0979. I will exit the market at 1.0979 and consider selling the euro in the opposite direction, aiming for a movement of 30-35 points from the entry point. A strong upward movement in the euro today is unlikely.It is important to note: Before buying, ensure that the MACD indicator is above the zero line and just beginning to rise from it.

Scenario #2: I also plan to buy the euro today if there are two consecutive tests of the 1.0911 price level, when the MACD indicator is in the oversold area. This will limit the downward risk of the pair and trigger a reversal upward. We can expect a rise to the opposite levels of 1.0943 and 1.0979.

Sell Signal

Scenario #1: I will sell the euro after the price reaches the 1.0911 level (the red line on the chart). The target will be 1.0874, where I plan to exit the market and immediately buy the euro in the opposite direction, aiming for a 20-25 point movement from the level. Pressure on the pair will return if the euro fails to hold above the daily high.It is important to note: Before selling, ensure that the MACD indicator is below the zero line and just beginning to decline from it.

Scenario #2: I also plan to sell the euro today if there are two consecutive tests of the 1.0943 level when the MACD indicator is in the overbought area. This will limit the upward potential of the pair and trigger a reversal downward. We can expect a decline to the opposite levels of 1.0911 and 1.0874.

Chart Explanation:

  • Thin green line: Entry price for buying the instrument.
  • Thick green line: Suggested price for placing a Take Profit order or manually locking in profits, as further growth above this level is unlikely.
  • Thin red line: Entry price for selling the instrument.
  • Thick red line: Suggested price for placing a Take Profit order or manually locking in profits, as further decline below this level is unlikely.
  • MACD Indicator: It is crucial to pay attention to overbought and oversold zones when entering the market.

Important Notes

Beginner traders in the forex market must be very cautious when making market entry decisions. It is best to stay out of the market before major fundamental reports are released to avoid getting caught in sharp price swings. If you choose to trade during news releases, always set stop-loss orders to minimize losses. Without stop-loss orders, you could quickly lose your entire deposit, especially if you do not practice proper money management and trade with large volumes.

Remember, successful trading requires a clear trading plan, such as the one provided above. Spontaneous trading decisions based on the current market situation are inherently a losing strategy for an intraday trader.

*El análisis de mercado publicado aquí tiene la finalidad de incrementar su conocimiento, más no darle instrucciones para realizar una operación.

Jakub Novak,
Analytical expert of InstaSpot
© 2007-2024
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