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FX.co ★ EUR/USD: Simple Trading Tips for Novice Traders on October 8. Review of Yesterday's Forex Trades

EUR/USD: Simple Trading Tips for Novice Traders on October 8. Review of Yesterday's Forex Trades

Trade Analysis and Tips for Trading the Euro

There were no tests of my indicated levels in the second half of the day. The main reason for the low volatility was the lack of fundamental U.S. data, or more precisely, the absence of important data that could shift the balance of power in the market. Surprisingly, speeches by Federal Reserve representatives had no impact on market sentiment. Today, we expect data on industrial production in Germany and France's trade balance, a meeting of the EU finance ministers, and a speech by European Central Bank board member Joachim Nagel. Since Nagel made statements yesterday, his speech is unlikely to bring any changes, as is the mediocre Eurozone data. For this reason, I expect trading to remain within a low-volatility channel. Regarding the intraday strategy, I will rely more on executing Scenarios #1 and #2.

EUR/USD: Simple Trading Tips for Novice Traders on October 8. Review of Yesterday's Forex Trades

Buy Signal

Scenario #1: Today, you can buy the euro when the price reaches the 1.0994 area (green line on the chart) with a target of rising to the 1.1028 level. At the 1.1028 point, I plan to exit the market and sell the euro in the opposite direction, expecting a movement of 30-35 pips from the entry point. It would help if you only counted on the euro rising today in the first half of the day after strong Eurozone data. Important! Before buying, ensure the MACD indicator is above the zero mark and beginning to rise.

Scenario #2: I also plan to buy the euro today in the event of two consecutive tests of the 1.0973 price when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a market reversal upwards. You can expect a rise to the opposite levels of 1.0994 and 1.1028.

Sell Signal

Scenario #1: I plan to sell the euro after it reaches the 1.0973 level (red line on the chart). The target will be 1.0935, where I plan to exit the market and buy in the opposite direction (expecting a movement of 20-25 pips in the reverse direction from the level). Pressure on the pair will return today if there is a failed attempt to rise beyond the daily high and weak Eurozone data. Important! Before selling, make sure the MACD indicator is below the zero mark and beginning to decline.

Scenario #2: I also plan to sell the euro today if there are two consecutive tests of the 1.0994 price when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. You can expect a decline to the opposite levels of 1.0973 and 1.0935.

EUR/USD: Simple Trading Tips for Novice Traders on October 8. Review of Yesterday's Forex Trades

What's on the Chart:

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

Thick green line: The anticipated price where you can set Take Profit or manually lock in profits, as further growth above this level is unlikely.

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

Thick red line: The anticipated price where you can set Take Profit or manually lock in profits, as further decline below this level is unlikely.

MACD Indicator: When entering the market, it is important to be guided by overbought and oversold zones.

Important: Novice traders in the forex market should be cautious when making market entry decisions. It is best to stay out of the market before the release of important fundamental reports to avoid sudden exchange rate fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. You can quickly lose your entire deposit without stop orders, especially if you do not use money management and trade in large volumes.

And remember, for successful trading, you need to have a clear trading plan, like the one presented above. Spontaneous trading decisions based on the current market situation are initially a losing strategy for an intraday trader.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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