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FX.co ★ EUR/USD: Simple Trading Tips for Novice Traders on October 9. Analysis of Yesterday's Forex Trades

EUR/USD: Simple Trading Tips for Novice Traders on October 9. Analysis of Yesterday's Forex Trades

Analysis of Trades and Trading Tips for the Euro

The test of the 1.0974 price level occurred when the MACD indicator had already moved significantly below the zero mark, limiting the pair's downward potential. For this reason, I did not sell the euro. No other entry points were formed. Weak volatility with a slight advantage for euro sellers persisted in the second half of the day after speeches by representatives of the Federal Reserve. Personally, I expected more active selling of risk assets. Today, it is unlikely that we will see anything significant, as the only data in the first half of the day is the German trade balance. For this reason, it is better to trade within the range we have been in throughout this week. Regarding intraday strategy, I will rely more on Scenario #2.

EUR/USD: Simple Trading Tips for Novice Traders on October 9. Analysis of Yesterday's Forex Trades

Buy Signal

Scenario #1: Today, you can buy the euro if the price reaches the area of 1.0983 (green line on the chart) with a target of 1.1028. At 1.1028, I plan to exit the market and sell the euro in the opposite direction, aiming for a movement of 30-35 pips from the entry point. We will unlikely see any significant euro growth in the first half of the day, as there is no crucial data from the Eurozone. Important! Before buying, ensure the MACD indicator is above the zero mark and just starting to rise from it.

Scenario #2: I also plan to buy the euro today if there are two consecutive tests of the 1.0961 price when the MACD indicator is in the oversold area. This will limit the pair's downward potential and could lead to an upward market reversal. A rise to the opposite levels of 1.0983 and 1.1028 can be expected.

Sell Signal

Scenario #1: I plan to sell the euro after reaching the 1.0961 level (red line on the chart). The target will be 1.0925, where I plan to exit the market and buy immediately in the opposite direction (targeting a movement of 20-25 pips in the opposite direction from the level). Pressure on the pair will return today if it fails to break above the daily high and if the Eurozone data is weak. Important! Before selling, make sure that the MACD indicator is below the zero mark and just starting to decline.

Scenario #2: I also plan to sell the euro today in case of two consecutive tests of the 1.0983 price when the MACD indicator is in the overbought area. This will limit the pair's upward potential and could lead to a market reversal downward. A decline to the opposite levels of 1.0961 and 1.0925 can be expected.

EUR/USD: Simple Trading Tips for Novice Traders on October 9. Analysis of Yesterday's Forex Trades

What's on the Chart:

Thin Green Line: Entry price for buying the trading instrument.

Thick Green Line: Estimated price where Take Profit can be set or profits can be manually secured, as further growth above this level is unlikely.

Thin Red Line: Entry price for selling the trading instrument.

Thick Red Line: Estimated price where Take Profit can be set or profits can be manually secured, as further decline below this level is unlikely.

MACD Indicator: When entering the market, it's important to consider overbought and oversold zones.

Important: Novice traders in the forex market should carefully make entry decisions. It's best to stay out of the market before the release of significant fundamental reports to avoid being caught in sharp price swings. If you decide to trade during news releases, always set stop-loss orders to minimize losses. You can quickly lose your entire deposit without stop-loss orders, especially if you are trading large volumes without proper money management.

And remember, successful trading requires a clear trading plan, like the example provided above. Making spontaneous trading decisions based on the current market situation is 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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