16.10.202415:22 Forex Analysis & Reviews: EUR/USD: Simple Trading Tips for Beginner Traders on October 16th (U.S. Session)

Analysis of Trades and Tips for Trading the Euro

The test of the 1.0893 price level occurred when the MACD indicator had just started moving upward from the zero line, confirming a good entry point to buy the euro as part of a bullish correction. However, as shown on the chart, the pair failed to rally significantly, so I decided to exit the market and reassess my strategy. Given that the economic calendar only features the U.S. Import Price Index and there are no new statements from Federal Reserve representatives, there isn't much to reassess. I expect both low volatility and low trading volumes during the second half of the day. Regarding my intraday strategy, I plan to focus on implementing Scenario #2.

Buy Signal

Scenario #1: Today, I plan to buy the euro when the price reaches the 1.0902 level (green line on the chart), with a target of reaching the 1.0930 level. At 1.0930, I will exit the market and then sell the euro, aiming for a 30-35 point movement in the opposite direction from the entry point. A strong upward move for the euro is unlikely today. Note: Before buying, ensure the MACD indicator is above the zero line and just starting to rise from it.

Scenario #2: I also plan to buy the euro today if there are two consecutive tests of the 1.0883 price, with the MACD indicator in the oversold area. This will limit the pair's downward potential and likely lead to an upward reversal. The expected targets are the resistance levels of 1.0902 and 1.0930.

Sell Signal

Scenario #1: I will sell the euro when it reaches the 1.0883 level (red line on the chart). The target will be the 1.0847 level, where I plan to exit the market and then buy the euro, expecting a 20-25 point reversal from this level. Selling pressure will return if the pair fails to consolidate above 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 1.0902 price, with the MACD indicator in the overbought area. This will limit the pair's upward potential and likely trigger a reversal downward. The expected targets are the support levels of 1.0883 and 1.0847.

Chart Details:

• Thin green line – the entry price where you can buy the trading instrument;
• Thick green line – the expected price where you can place Take Profit or manually lock in profits, as further growth beyond this level is unlikely;
• Thin red line – the entry price where you can sell the trading instrument;
• Thick red line – the expected price where you can place Take Profit or manually lock in profits, as further declines beyond this level are unlikely;
• MACD Indicator – when entering the market, it's important to rely on overbought and oversold zones.

Important: Beginner traders in the Forex market must exercise caution when deciding to enter the market. Before the release of important fundamental reports, it's best to stay out of the market to avoid sharp price fluctuations. If you choose to trade during news releases, always set stop-loss orders to minimize losses. Without stop-losses, you risk losing your entire deposit, especially when trading large volumes without proper money management.

Remember, successful trading requires a clear plan, like the one outlined above. Spontaneous trading decisions based on current market conditions are generally a losing strategy for an intraday trader.