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FX.co ★ EUR/USD: Simple Trading Tips for Beginner Traders on October 2 (U.S. Session)

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Forex Analysis:::2024-10-02T14:33:41

EUR/USD: Simple Trading Tips for Beginner Traders on October 2 (U.S. Session)

Review of Trades and Trading Tips for the Euro

The test of the 1.1080 level coincided with the MACD indicator having already moved significantly upward from the zero mark. This limited the pair's upward potential, so I did not buy the euro. The labor market data for the Eurozone, which was released, fully matched economists' forecasts and had no impact on the currency market, as expected. We now await the ADP employment change data from the U.S. for September, and only significant deviations from forecasts are likely to trigger a spike in volatility. Additionally, pay attention to the speeches from Fed representatives Michelle Bowman and Thomas Barkin. Overall, the euro remains under pressure due to the ongoing tension in the Middle East. Regarding intraday strategy, I plan to act based on the implementation of Scenario 1 and Scenario 2.

EUR/USD: Simple Trading Tips for Beginner Traders on October 2 (U.S. Session)

Buy Signal

Scenario 1: Today, I plan to buy the euro upon reaching the price around 1.1086 (green line on the chart), aiming for a rise to the 1.1114 level. At 1.1114, I will exit the market and sell the euro in the opposite direction, expecting a 30-35 point movement from the entry point. A strong upward movement in the euro today can only be expected if the Fed signals easing and U.S. statistics disappoint. Important! Ensure the MACD indicator is above the zero mark and beginning to rise before buying.

Scenario 2: I also plan to buy the euro today in case of two consecutive tests of the 1.1062 level, when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a reversal. A rise toward 1.1086 and 1.1114 is expected.

Sell Signal

Scenario 1: I will sell the euro after the price reaches the 1.1062 level (red line on the chart). The target will be the 1.1030 level, where I plan to exit the market and immediately buy the euro in the opposite direction, aiming for a 20-25 point rebound. Pressure on the pair will return in case of strong U.S. statistics. Important! Ensure the MACD indicator is below the zero mark and beginning to decline before selling.

Scenario 2: I also plan to sell the euro today if there are two consecutive tests of the 1.1086 level, when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. A decline toward 1.1062 and 1.1030 is expected.

EUR/USD: Simple Trading Tips for Beginner Traders on October 2 (U.S. Session)

Chart Explanation:

  • Thin Green Line: The entry price at which the trading instrument can be bought.
  • Thick Green Line: The expected price where Take Profit orders can be set or profits manually secured, as further growth above this level is unlikely.
  • Thin Red Line: The entry price at which the trading instrument can be sold.
  • Thick Red Line: The expected price where Take Profit orders can be set or profits manually secured, as further decline below this level is unlikely.
  • MACD Indicator: When entering the market, it's important to pay attention to the overbought and oversold zones.

Important Notice:

Beginner traders on the Forex market should be very cautious when making market entry decisions. It's best to stay out of the market before major fundamental reports to avoid getting caught in sharp price swings. If you choose to trade during news releases, always place stop-loss orders to minimize losses. Without stop-losses, you could quickly lose your entire deposit. This is especially true if you're trading large volumes without proper money management.

And remember, successful trading requires having a clear trading plan, like the one presented above. Making spontaneous trading decisions based on the current market situation is a losing strategy for intraday traders from the start.

Analyst InstaForex
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