11.05.202608:24 Forex Analysis & Reviews: EUR/USD: Simple Trading Tips for Beginner Traders on May 11. Analysis of Yesterday's Forex Trades

Analysis of Trades and Trading Tips for the Euro Currency:

The price at 1.1765 coincided with the moment when the MACD indicator was just starting to move down from the zero mark, confirming the correct entry point for selling the euro. However, losses were recorded on the trade.

The US dollar weakened under the pressure of mixed labor market data and heightened geopolitical risks. Last Friday, despite positive US non-farm job creation data, the dollar fell. The data were insufficient to outweigh the optimism surrounding the situation in the Middle East. However, today the situation has changed, and another escalation in US-Iran relations has led to pressure on the European currency.

The absence of positive news from the Eurozone, including statistical data, today may further weaken the EUR/USD pair. Without specifics in US-Iran relations, pressure on risk assets may persist.

Regarding the intraday strategy, I will rely more on scenarios #1 and #2.

Buy Scenarios

Scenario #1: Today, I plan to buy euros at a price around 1.1762 (green line on the chart), with a target price of 1.1785. At point 1.1785, I plan to exit the market and sell euros in the opposite direction, expecting a move of 30-35 pips from the entry point. One can only expect the euro to rise after good news from the Middle East. Important! Before buying, ensure the MACD indicator is above the zero mark and just starting to rise from it.

Scenario #2: I also plan to buy euros today if there are two consecutive tests of 1.1745 when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. A rise to the opposite levels of 1.1762 and 1.1785 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 the level of 1.1726, where I plan to exit the market and buy immediately in the opposite direction (expecting a movement of 20-25 pips in the opposite direction from the level). Pressure on the pair may return at any moment today. Important! Before selling, ensure the MACD indicator is below the zero mark and just starting its decline from it.

Scenario #2: I also plan to sell euros today if there are two consecutive tests of 1.1762 when the MACD indicator is in the overbought area. This will limit the upward potential of the pair and lead to a downward market reversal. A decline to the opposite levels of 1.1745 and 1.1726 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.