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FX.co ★ EURUSD: Simple Trading Tips for Beginners on October 23. Analysis of Yesterday's Forex Deals

EURUSD: Simple Trading Tips for Beginners on October 23. Analysis of Yesterday's Forex Deals

Analysis of Trades and Trading Tips for the Euro

The test of the 1.0812 price level occurred when the MACD indicator had moved significantly below the zero mark, which limited the pair's downward potential—especially given the low volatility expected throughout the day. For this reason, I did not sell the euro. A short time later, there was another test of 1.0812 when the MACD was in the oversold area, allowing scenario #2 for buying to play out, but it did not result in substantial growth. As a result, I could only exit the trade with minimal losses. Again, there is no economic data in the first half of the day, and only statements from European Central Bank board member Joachim Nagel and ECB President Christine Lagarde are expected. This could be a significant obstacle to the pair's correction since, recently, European policymakers have been increasingly advocating for active rate cuts in the eurozone. As for the intraday strategy, I will rely more on the implementation of scenarios #1 and #2.

EURUSD: Simple Trading Tips for Beginners on October 23. Analysis of Yesterday's Forex Deals

Buy Signal

Scenario #1: Today, buying the euro is possible when the price reaches around 1.0809 (green line on the chart), with a target of rising to 1.0844. At 1.0844, 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. Any upward movement in the euro today during the first half of the day will likely be within the scope of a correction. 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 1.0788 price level when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. A rise can be expected to the opposite levels of 1.0809 and 1.0844.

Sell Signal

Scenario #1: I plan to sell the euro after reaching the 1.0788 level (red line on the chart). The target will be 1.0755, where I intend to exit the market and immediately buy in the opposite direction (expecting a movement of 20-25 pips in the opposite direction from the level). Pressure on the pair could return anytime, as the downtrend has not disappeared. 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 if there are two consecutive tests of the 1.0809 price level when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. A decline can be expected to the opposite levels of 1.0788 and 1.0755.

EURUSD: Simple Trading Tips for Beginners on October 23. Analysis of Yesterday's Forex Deals

What's on the Chart:

Thin Green Line: The entry price at which the trading instrument can be bought.

Thick Green Line: The estimated price at which take-profit orders can be set, or profits can be manually secured, as further growth above this level is unlikely.

Thin Red Line: The entry price for selling the trading instrument.

Thick Red Line: The estimated price at which take-profit orders can be set, or profits can be manually secured, as further declines below this level are unlikely.

MACD Indicator: Considering overbought and oversold zones is crucial when entering the market.

Important Note for Beginners:

Novice traders in the Forex market must be cautious when making market entry decisions. It is best to stay out of the market before the release of major fundamental reports to avoid getting caught in sharp price movements. 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 do not use money management and trade with large volumes.

And remember, successful trading requires a clear trading plan, like the one I've presented above. Spontaneous trading decisions based on the current market situation are inherently 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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