FX.co ★ EUR/USD: Simple Trading Tips for Beginner Traders on May 7. Analysis of Yesterday's Forex Trades

Trade Analysis and Trading Tips for the Euro:

The test of the price at 1.1758 coincided with the MACD indicator just beginning to move downward from the zero mark, confirming the correct entry point for selling the euro. As a result, the pair declined by only 10 pips.

The strengthening of the dollar occurred against the backdrop of a rapid fading of optimism caused by assumptions regarding a quick peace settlement between the United States and Iran. It became clear that Tehran is unwilling to accept the conditions Washington has presented. This uncertainty will persist until all parties clarify their positions. Additional pressure on markets is also exerted by other factors, such as US inflationary pressures and statements from Federal Reserve committee members on future monetary policy. In this environment, the dollar, being one of the most reliable safe-haven currencies, continues to attract attention, reflecting the overall anxiety of market participants.

Today, in the first half of the day, data on changes in retail sales volumes in the Eurozone for March is expected to be released. These figures serve as a barometer of consumer activity and provide valuable insights into the regional economy. Simultaneously, Germany, the Eurozone's largest economy, will publish reports on the dynamics of industrial orders. An increase in orders may signal a rise in production capacities and, consequently, optimistic prospects for the German economy and the euro. The opposite scenario —a decline in orders, which is more likely—could raise concerns about a potential slowdown in the industrial sector.

Regarding the intraday strategy, I will primarily rely on implementing Scenarios #1 and #2.

Buy Scenarios

Scenario #1: Today, I can buy euros at a price around 1.1765 (green line on the chart), with a target increase to 1.1789. At the point of 1.1789, I plan to exit the market and also sell euros in the opposite direction, expecting a movement of 30-35 pips from the entry point. A rise in the euro can only be anticipated after good news. Important! Before buying, ensure that the MACD indicator is above the zero mark and is just beginning to rise from there.

Scenario #2: I also intend to buy euros today if the price tests 1.1745 twice in a row while the MACD indicator is in the oversold area. This will limit the pair's downside potential and lead to an upward market reversal. An increase to opposing levels of 1.1765 and 1.1789 can be expected.

Sell Scenarios

Scenario #1: I plan to sell euros once the price reaches 1.1745 (red line on the chart). The target will be 1.1718, where I intend to exit the market and immediately buy in the opposite direction (expecting a 20-25-pip move in the opposite direction from this level). Pressure on the pair may return at any moment today. Important! Before selling, ensure that the MACD indicator is below the zero mark and is just beginning to decline from there.

Scenario #2: I also plan to sell euros today if the price tests 1.1765 twice in a row while the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. A decrease to opposing levels of 1.1745 and 1.1718 can be expected.

What is on the Chart:

• The thin green line – entry price at which the trading instrument can be bought;
• The thick green line – approximate price where take profit can be set or to realize profit, as further growth above this level is unlikely;
• The thin red line – entry price at which the trading instrument can be sold;
• The thick red line – approximate price where take profit can be set or to realize profit, 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: Beginner traders in the Forex market need to make entry decisions very cautiously. It is best to stay out of the market before important fundamental reports to avoid sharp price fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. Without placing stop orders, you can quickly lose your entire deposit, especially if you do not use money management and trade in large volumes.

And remember, for successful trading, it is essential to have a clear trading plan, as outlined above. Making impulsive trading decisions based on the current market situation is fundamentally a losing strategy for an intraday trader.