23.08.202408:40 Forex Analysis & Reviews: EUR/USD: Simple Trading Tips for Beginners for the European Session on August 23

Analysis of trades and tips on EUR/USD

The price test of 1.1125 occurred when the MACD indicator started moving downward from the zero mark, confirming the correct entry point for selling the euro. As a result, the pair dropped more than 30 pips. The numbers for the U.S. manufacturing and services sector activity indices were as contradictory as those from the eurozone countries, but this did not harm the bearish market observed in the afternoon. The decline in manufacturing activity was offset by growth in the services sector. Today, there are no economic reports from the eurozone, so everyone is waiting for comments from Federal Reserve Chair Jerome Powell. In the morning, I will not rush into buying, and I advise you not to either, as significant volatility is unlikely. For the intraday strategy, I will rely more on scenario No. 2.

Buy signals

Scenario No 1. Today, you can buy the euro when the price reaches around 1.1143, plotted by the green line on the chart, with the goal of rising to 1.1172. At 1.1172, I plan to exit the market and sell the euro in the opposite direction, counting on a movement of 30-35 pips from the entry point. It is unlikely that it will be possible to count on the growth of the euro today in the first half of the day since everyone is waiting for the speech of the head of the Fed. Important: Before buying, ensure the MACD indicator is above the zero mark and starting to rise from it.

Scenario No 2. I am also going to buy the euro today in case of two consecutive price tests of 1.1122 when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a reverse market upturn. We can expect growth to the opposite levels of 1.1143 and 1.1172.

Sell signals

Scenario No 1. I plan to sell the euro after reaching the level of 1.1122, plotted by the red line on the chart. The target will be the level of 1.1089, where I will exit the market and buy immediately in the opposite direction (expecting a movement of 20-25 pips in the opposite direction from the level). Pressure on EUR/USD will return today, and we can expect the euro to return to yesterday's low in the first half of the day, but nothing else. Important: Before selling, make sure that the MACD indicator is below the zero mark and is just starting to decline from it.

Scenario No 2. I am also going to sell the euro today in case of two consecutive price tests of 1.1143 when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a reverse market downturn. One can expect a decline to the opposite levels of 1.1122 and 1.1089.

What's on the chart:

Thin green line: the entry price at which you can buy the trading instrument.

Thick green line: the estimated price at which you can set Take Profit or manually close positions, as further growth above this level is unlikely.

Thin red line: the entry price at which you can sell the trading instrument.

Thick red line: an estimated price at which you can place Take Profit or manually close positions, as further decline below this level is unlikely.

MACD indicator: when entering the market, it is essential to be guided by overbought and oversold zones.

Important: Novice traders in the forex market must be cautious when deciding to enter the market. It is best to stay out of the market before important fundamental reports are released to avoid getting caught in sharp price fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. You must set stop orders to avoid losing your entire deposit, especially if you don't use money management and trade in large volumes.

Remember, a clear trading plan, like the one I've outlined, is essential for successful trading. Making impulsive decisions based on the current market situation is a losing strategy for novice intraday traders.