FX.co ★ EUR/USD: simple trading tips for beginners for the European session on August 9

Analysis of trades and tips on EUR/USD

The price test of 1.0916 occurred when the MACD indicator started to fall from the zero mark, confirming the correct entry point for selling the euro. As a result, EUR/USD dropped more than 25 pips. Long positions on the rebound at the price of 1.0895, which I also highlighted in my forecast, yielded about 15 pips of profit. The absence of euro zone data and entirely predictable changes in the number of unemployment benefits claims in the US did not allow for serious adjustments in the balance of market forces. Apparently, the pair will continue to trade in the horizontal channel today. Data on Germany's Consumer Price Index, Italy's CPI, and trade balance are worth highlighting in the first half of the day. However, these reports are not of great interest, so significant market movements are unlikely because of them. Against this backdrop, we risk remaining without any volatility or regular movements, even within the horizontal channel, so I do not recommend rushing to enter the market. As for the intraday strategy, I will rely more on implementing scenario No. 2.

Buy signals

Scenario No 1. Today, you can buy the euro when the price reaches around 1.0930, plotted by the green line on the chart, with the goal of rising to 1.0960. At 1.0960, 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 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 1.0912 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 1.0930 and 1.0960.

Sell signals

Scenario No 1. I plan to sell the euro after reaching 1.0912, plotted by the red line on the chart. The target will be 1.0888, 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. 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 1.0930 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 1.0912 and 1.0888.

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.