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28.10.202416:42 Forex Analysis & Reviews: EURUSD: Simple Trading Tips for Beginner Traders on October 28th (U.S. Session)

Analysis of Trades and Trading Tips for the Euro

Testing the 1.0805 level occurred when the MACD indicator had already moved well above the zero mark, which limited the pair's upward potential. For this reason, I did not buy the euro. Due to the market's extremely low volatility, I missed out on other entry points. This situation is likely to repeat in the second half of the day, as no U.S. statistics are scheduled in the economic calendar, so market volume will likely remain low. I'll continue trading within the range of the sideways channel. For my intraday strategy, I'll primarily focus on implementing Scenario #2.

Exchange Rates 28.10.2024 analysis

Buy Signal

Scenario #1: Today, you can buy the euro when the price reaches around 1.0832 (green line on the chart) with a target rise to 1.0862. At 1.0862, I plan to exit the market and sell the euro in the opposite direction, aiming for a 30-35 point movement from the entry point. A strong rise in the euro is unlikely in the second half of the day. 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 1.0807 level when the MACD indicator is in the oversold zone. This will limit the pair's downward movement potential and lead to a market reversal upward. A rise to the opposite levels of 1.0832 and 1.0862 can be expected.

Sell Signal

Scenario #1: I plan to sell the euro after it reaches the 1.0807 level (red line on the chart). The target will be 1.0766, where I intend to exit the market and immediately enter a buy position in the opposite direction (aiming for a 20-25 point movement in the opposite direction from this level). Pressure on the pair will return if there's no activity at the daily high. 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 1.0832 level when the MACD indicator is in the overbought zone. This will limit the pair's upward potential and lead to a market reversal downward. A decline to the opposite levels of 1.0807 and 1.0766 can be expected.

Exchange Rates 28.10.2024 analysis

Chart Guide:

  • Thin Green Line – entry price at which you can buy the trading instrument.
  • Thick Green Line – target price for setting take-profit or manually closing positions to secure profits, as further growth above this level is unlikely.
  • Thin Red Line – entry price at which you can sell the trading instrument.
  • Thick Red Line – target price for setting take-profit or manually closing positions to secure profits, as further decline below this level is unlikely.
  • MACD Indicator – it's important to use the overbought and oversold zones for determining market entries.

Important Notes for Beginner Forex Traders:

New traders should exercise extreme caution when entering the market. Before major fundamental reports are released, it's best to stay out of the market to avoid sudden price swings. If you decide to trade during news releases, always set stop orders to minimize losses. Trading without stop orders can lead to significant losses, especially if you don't use money management practices and trade in large volumes.

Remember, successful trading requires a clear trading plan, like the one outlined above. Making spontaneous trading decisions based on the current market situation is an inherently losing strategy for intraday traders.

*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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