FX.co ★ EUR/USD: simple trading tips for beginners for the European session on August 2

Analysis of trades and tips on EUR/USD

The price test of 1.0807 occurred when the MACD indicator had moved significantly above the zero mark, limiting the further upward potential for the pair. For this reason, I did not buy the euro. The weak ISM manufacturing activity data could have provoked traders to buy the euro. However, there was too little activity on the part of big players after the report was published. Today, in the first half of the day, reports on industrial production in France and Italy may warrant investor attention. However, these indicators will likely be ignored, as important data on the U.S. labor market are ahead, which we will discuss in the forecast for the U.S. session. But I believe that it's better to rely more on a euro correction at the end of the week than to look for selling further down the trend. As for the intraday strategy, I will rely more on implementing scenarios No. 1 and 2.

Buy signals

Scenario No 1. Today, you can buy the euro when the price reaches 1.0811, plotted by the green line on the chart, with the goal of rising to 1.0843. At the level of 1.0843, 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. We can only count on the euro to rise within the framework of a bullish correction. Important: Before buying, ensure the MACD indicator is above the zero mark and starting to rise from it.

Scenario No 2. I will also buy the euro today if the price at 1.0791 is tested twice consecutively when the MACD indicator is in the oversold area. This will limit the instrument's downward potential and lead to a reverse market upturn. One can expect growth to the opposite levels of 1.0811 and 1.0843.

Sell signals

Scenario No 1. I plan to sell the euro after it reaches 1.0791, plotted by the red line on the chart. The target will be 1.0765, 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 if it fails to consolidate near the intraday high and weak Eurozone data. 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 will also sell the euro today in case of two consecutive price tests of 1.0811 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 1.0791 and 1.0765.

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.