Analysis of Trades and Tips for Trading the Euro

The test of the 1.0536 level occurred when the MACD indicator was significantly below the zero line, limiting the pair's downward potential. For this reason, I refrained from selling, and buying was not an option as the price failed to reach the target level of 1.0496. Weak Eurozone data further justified selling the euro against the US dollar. Buyers now pin their hopes on inflation-related statistics, including the US Producer Price Index (PPI) for October and the weekly report on initial jobless claims. A speech by FOMC member Thomas Barkin will conclude the day. Strong statistics could diminish the chances of a euro rally, even as a corrective move. For intraday strategy, I will rely on Scenario #1 and Scenario #2.

Buy Signal

Scenario #1: Buying the euro is possible at the 1.0553 level (green line on the chart), targeting a rise to 1.0588. At 1.0588 I plan to exit the market and sell the euro in the opposite direction, aiming for a movement of 30–35 points. A significant euro rally today is likely only if US data proves weak.Important: Verify that the MACD indicator is above the zero line and beginning to rise before initiating buy trades.

Scenario #2: I also plan to buy the euro if the 1.0523 level is tested twice consecutively, with the MACD indicator in the oversold area. This would limit the pair's downward potential and likely trigger a market reversal toward the 1.0553 and 1.0588 levels.

Sell Signal

Scenario #1: Selling the euro is possible at the 1.0523 level (red line on the chart), targeting 1.0485. At 1.0485 I will exit the market and immediately open a long position, aiming for a 20–25 point recovery. Selling pressure is likely to resume if US inflation data indicates rising price levels.Important: Confirm that the MACD indicator is below the zero line and beginning to decline before selling.

Scenario #2: I also plan to sell the euro if the 1.0553 level is tested twice consecutively, with the MACD indicator in the overbought area. This scenario would limit the pair's upward potential and likely lead to a reversal toward the 1.0523 and 1.0485 levels.

Chart Key:

• Thin Green Line: Entry price for long positions.
• Thick Green Line: Target price for setting Take Profit or manually closing positions, as further growth above this level is unlikely.
• Thin Red Line: Entry price for short positions.
• Thick Red Line: Target price for setting Take Profit or manually closing positions, as further declines below this level are unlikely.
• MACD Indicator: Monitor overbought and oversold zones for confirmation when entering the market.

Important Notes for Beginner Forex Traders:

• Exercise caution when making market entry decisions. Stay out of the market before significant fundamental reports to avoid sharp price fluctuations.
• Always set stop-loss orders to minimize potential losses when trading during news releases. Without stop-losses, you risk losing your entire deposit, especially if trading large volumes without proper money management.
• Successful trading requires a clear trading plan, such as the example provided above. Spontaneous trading decisions based on current market conditions are a losing strategy for intraday traders.