FX.co ★ EUR/USD: simple trading tips for beginners for the European session on August 7

Analysis of trades and tips on EUR/USD

The price test of 1.0921 occurred when the MACD indicator started its upward movement from the zero mark, confirming the correct entry point for buying the euro. As a result, EUR/USD rose by more than 15 pips. Yesterday, the Eurozone retail sales data was disappointing, putting more pressure on the struggling euro. The release of US data in the latter half of the day allowed the pair to recover somewhat, but the short-term direction remained downward. Today, data on German industrial production, the trade balance, and France's trade balance may warrant investor attention. These indicators are unlikely to impact the market significantly, so it's better to stick with the trend toward strengthening the US dollar, which has recently been enjoying reasonably good demand. 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 the area around 1.0921, plotted by the green line on the chart, with the goal of rising to 1.0953. At 1.0953, 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. You can count on the euro to rise today only within the framework of a small upward correction, since there is not much point in relying on the data. 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 1.0902 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 1.0921 and 1.0953.

Sell signals

Scenario No 1. I plan to sell the euro after reaching 1.0902, plotted by the red line on the chart. The target will be 1.0874, 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 the pair fails to consolidate in the area of 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 1.0921 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 1.0902 and 1.0874.

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.