empty
 
 
23.12.2024 09:16 AM
EUR/USD: Simple Trading Tips for Beginner Traders on December 23. Forex Analysis of Trades

Analysis of Trades and Trading Tips for the Euro

The test of the 1.0401 price level coincided with the MACD indicator starting to move upward from the zero mark. This confirmed a valid entry point for buying the euro, resulting in a 35-pip rise.

The sharp decline in November's U.S. Personal Consumption Expenditures (PCE) index influenced currency markets and trader sentiment. The data fell short of economists' expectations, leading to a weakening of the dollar. As a result, riskier assets, including the euro, found an opportunity for growth.

Today, traders have limited economic data to rely on. The German Import Price Index, set to be released in the first half of the day, is expected to have minimal impact on the euro. Traders accustomed to responding to significant economic indicators will likely remain in a holding pattern, waiting for more impactful news that could shift the current trading direction. While the import price index may provide some insight into Germany's economy, market participants may continue trading within a horizontal channel, given the prevailing uncertainty and expectations surrounding the European Central Bank's interest rate adjustments.

For intraday trading, I will primarily rely on executing Scenario #2.

This image is no longer relevant

Buy Signal

Scenario #1: Today, I plan to buy the euro when the price reaches around 1.0447 (green line on the chart), aiming for a rise to 1.0477. At 1.0477, I plan to exit the market and sell the euro in the opposite direction, anticipating a movement of 30-35 pips from the entry point. Expecting euro growth today in the first half of the day is only feasible as a continuation of Friday's correction. Important! Before buying, ensure the MACD indicator is above the zero mark and just starting to rise.

Scenario #2: I also plan to buy the euro today if there are two consecutive tests of the 1.0427 price level while the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a market reversal upwards. Growth to the opposite levels of 1.0447 and 1.0477 can be expected.

Sell Signal

Scenario #1: I plan to sell the euro after it reaches the level of 1.0427 (red line on the chart). The target will be 1.0396, where I intend to exit the market and immediately buy in the opposite direction, anticipating a movement of 20-25 pips in the opposite direction from the level. Downward pressure on the pair could return at any moment. Important! Before selling, ensure 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 1.0447 price level while the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward market reversal. A decline to the opposite levels of 1.0427 and 1.0396 can be expected.

This image is no longer relevant

Chart Notes

  • Thin green line: Entry price for buying the trading instrument.
  • Thick green line: A suggested target for Take Profit or manually locking in profits, as further growth above this level is unlikely.
  • Thin red line: Entry price for selling the trading instrument.
  • Thick red line: A suggested target for Take Profit or manually locking in profits, as further decline below this level is unlikely.
  • MACD Indicator: Critical for identifying overbought and oversold zones to guide market entry decisions.

Important Note for Beginner Traders

  • Always approach market entry decisions cautiously.
  • Avoid trading during major news releases to sidestep volatile price swings.
  • If trading during news releases, always set stop-loss orders to minimize losses.
  • Trading without stop-loss orders or money management practices can quickly deplete your deposit, especially when using large volumes.
  • A clear trading plan, like the one outlined above, is essential for successful trading. Spontaneous trading decisions based on current market conditions are inherently disadvantageous for intraday traders.
Jakub Novak,
Especialista em análise na InstaForex
© 2007-2024
Ganhe com as variações das taxas das criptomoedas com a InstaForex.
Baixe o MetaTrader 4 e abra a sua primeira operação.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    PARTICIPE DO CONCURSO
  • Chancy Deposit
    Deposite US $ 3.000 em sua conta e receba $6000 mais!
    Em Dezembro nós sorteamos $6000 na campanha Chancy Deposit!
    Tenha a chance de ganhar, depositando $3,000 em sua conta de negociação. Após cumprir essa condição, você se torna um participante da campanha.
    PARTICIPE DO CONCURSO
  • Trade Wise, Win Device
    Abasteça a sua conta com pelo menos $500, inscreva-se no concurso e tenha a chance de ganhar dispositivos móveis.
    PARTICIPE DO CONCURSO
  • Bônus de 100%
    Sua oportunidade única de receber um bônus de 100% em seu depósito
    RECEBA O BÔNUS
  • Bônus de 55%
    Solicite um bônus de 55% em cada depósito
    RECEBA O BÔNUS
  • Bônus de 30%
    Receba um bônus de 30% toda vez que você fizer um depósito em sua conta
    RECEBA O BÔNUS

Recommended Stories

Não pode falar agora?
Faça sua pergunta no chat.
Widget callback