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FX.co ★ EUR/USD: Simple trading tips for novice traders on May 29th (US session)

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Forex Analysis:::2024-05-29T13:50:51

EUR/USD: Simple trading tips for novice traders on May 29th (US session)

Analysis of transactions and tips on trading the European currency

The price test of 1.0843 came at a time when the MACD indicator was starting to move down from zero, which, as part of a downward correction, seemed to be an excellent entry point for selling the euro in continuation of the trend. Unfortunately, as you can see on the chart, it never came to a major drop in the pair. In the afternoon, we are also waiting for the figures on German inflation, to which news on the United States will be added. The Fed-Richmond manufacturing index and the publication of the Fed's economic review by region "Beige Book" are expected. This statistic is secondary, so I expect movement immediately after the publication of the German consumer price index, which will determine the pair's direction for the afternoon. As for the intraday strategy, I plan to act based on implementing scenarios No. 1 and No. 2.

EUR/USD: Simple trading tips for novice traders on May 29th (US session)

Buy signal

Scenario No. 1: I plan to buy euros when the price reaches 1.0859 (the green line on the chart) to grow to the level of 1.0888. At 1.0888, I will exit the market and sell euros in the opposite direction, counting on a movement of 30-35 points from the entry point. The euro's upward movement today can be counted only after the news of falling inflation in Germany and weak data in the United States. Important! Before buying, ensure the MACD indicator is above the zero mark and is just starting to grow from it.

Scenario No. 2: I also plan to buy euros today for two consecutive price tests of 1.0836 when the MACD indicator will be in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. We can expect an increase to the opposite levels of 1.0859 and 1.0888.

Sell signal

Scenario No. 1: I will sell euros after reaching the level of 1.0836 (the red line on the chart). The target will be the 1.0805 level. I plan to exit the market and buy euros immediately in the opposite direction (counting on a movement of 20-25 points in the opposite direction from the level). The pressure on the pair will return in case of unsuccessful buyer activity in the area of the daily maximum and strong statistics in the United States. Important! Before selling, ensure that the MACD indicator is below the zero mark and is just beginning its decline.

Scenario No. 2: I also plan to sell euros today in the case of two consecutive price tests of 1.0859 at a time when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a reverse downward reversal of the market. We can expect a decline to the opposite levels of 1.0836 and 1.0805.

EUR/USD: Simple trading tips for novice traders on May 29th (US session)

What's on the chart:

Thin green line is the entry price at which you can buy a trading instrument.

Thick green line is the estimated price where you can place Take profit or fix profits yourself, since further growth is unlikely above this level.

Thin red line is the entry price at which a trading instrument can be sold.

Thick red line is the estimated price where you can place Take profit or fix profits yourself, since further decline is unlikely below this level.

MACD indicator. When entering the market, it is important to be guided by overbought and oversold zones.

Important. Novice forex traders need to make decisions about entering the market very carefully. Before releasing important fundamental reports, staying out of the market is best to avoid falling into sharp fluctuations in the exchange rate. If you decide to trade during the news release, always place stop orders to minimize losses. You must place stop orders to avoid losing the entire deposit quickly, especially if you do not use money management but trade in large volumes.

Remember that for successful trading, you need a clear trading plan, following the example I presented above. Making spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.

Analyst InstaForex
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