Analysis of Trades and Trading Tips for the Euro

The test of the 1.0895 level occurred when the MACD indicator had moved significantly above the zero line, which limited the pair's upward potential. For this reason, I did not buy the euro. The second test of this level took place when the MACD was already in the overbought zone, leading to the implementation of Scenario #2 for selling. However, as you can see on the chart, no downward movement followed. Key U.S. economic indicators are due soon, including the ISM services activity index, services PMI, composite PMI, and the trade balance. However, these indicators are unlikely to significantly impact the market since all attention will be on the presidential election. For this reason, I anticipate trading to remain within a sideways range. Regarding the intraday strategy, I'll rely more on the implementation of Scenarios #1 and #2.

Buy Signal

Scenario #1: Today, buying the euro is possible if the price reaches around 1.0907 (green line on the chart) with a target of 1.0930. I plan to exit the market at 1.0930 and sell the euro in the opposite direction, aiming for a movement of 30–35 points from the entry point. A strong rise in the euro is unlikely in the second half of the day, nor is a sharp decline expected. Important: Before buying, make sure the MACD indicator is above the zero line and just beginning to rise from it.

Scenario #2: I also plan to buy the euro today if there is a double test of the 1.0888 level, with the MACD indicator in the oversold area. This should limit the pair's downward potential and prompt an upward reversal in the market. A rise to the opposite levels of 1.0907 and 1.0930 can be expected.

Sell Signal

Scenario #1: I plan to sell the euro after it reaches the 1.0888 level (red line on the chart). The target will be 1.0861, where I intend to exit the market and immediately buy in the opposite direction, aiming for a reversal of 20–25 points from that level. Pressure on the pair is likely to return if buyers show weak action near current highs. Important: Before selling, ensure the MACD indicator is below the zero line and just beginning to decline from it.

Scenario #2: I also plan to sell the euro today if there is a double test of the 1.0907 level, with the MACD indicator in the overbought area. This should limit the pair's upward potential and prompt a downward market reversal. A decline to the opposite levels of 1.0888 and 1.0861 can be expected.

What's on the Chart:

• Thin green line – Entry level for buying the asset.
• Thick green line – Expected level where you can set a Take Profit or independently lock in profit, as further growth above this level is unlikely.
• Thin red line – Entry level for selling the asset.
• Thick red line – Expected level where you can set a Take Profit or independently lock in profit, as further decline below this level is unlikely.
• MACD Indicator – Use overbought and oversold areas as guidance for entering the market.

Important: Beginner traders in the Forex market should make entry decisions with extreme caution. It's best to stay out of the market before major fundamental reports are released to avoid sudden price fluctuations. If you choose to trade during news releases, always set stop orders to manage potential losses. Without stop orders, you can quickly lose your entire deposit, especially if you trade in large volumes without money management.

Remember, a clear trading plan is essential for successful trading, as illustrated above. Spontaneous trading decisions based solely on the immediate market situation are generally unprofitable for intraday traders.