25.05.202613:23 Forex Analysis & Reviews: EUR/USD: Tips for Beginner Traders on May 25th (U.S. Session)

Trade Review and Tips for Trading the Euro

Due to low market volatility, the price did not reach the levels I identified during the first half of the day.

Given the lack of important macroeconomic data from the eurozone, the EUR/USD pair remained within its trading range. Considering that a similar situation is expected during the second half of the day due to the absence of major U.S. data releases, traders' attention will likely shift to other developments. In particular, the focus remains on events in the Middle East, where many market participants expect progress toward a peace agreement between the United States and Iran.

Any sign of progress in this direction could trigger a noticeable increase in risk appetite. In such a scenario, investors willing to take on higher risks may actively shift capital into higher-yielding, though more volatile, assets. This, in turn, would put upward pressure on the euro, supporting a potential rise in the EUR/USD pair. However, if negotiations fail once again, do not be surprised if the pair quickly loses its advantage.

As for the intraday strategy, I will rely primarily on the implementation of Scenarios No. 1 and No. 2.

Buy Signal

Scenario No. 1: Today, euro buying opportunities may be considered when the price reaches the 1.1650 level (green line on the chart), with a target at 1.1678. At 1.1678, I plan to exit long positions and consider opening short positions in the opposite direction, targeting a 30–35 point move from the entry point. Expectations for euro growth today are justified only if positive news emerges.

Important! Before buying, make sure that the MACD indicator is above the zero line and is just beginning to rise from it.

Scenario No. 2: I also plan to buy the euro today if the price tests the 1.1630 level twice consecutively while the MACD indicator is in oversold territory. This would limit the pair's downward potential and trigger a bullish market reversal. In this case, a rise toward the opposite levels of 1.1650 and 1.1678 can be expected.

Sell Signal

Scenario No. 1: I plan to sell the euro after the price reaches the 1.1630 level (red line on the chart). The target will be 1.1601, where I intend to exit short positions and immediately consider buying in the opposite direction, targeting a 20–25 point rebound. Pressure on the pair is likely to return today if negotiations fail.

Important! Before selling, make sure that the MACD indicator is below the zero line and is just beginning to decline from it.

Scenario No. 2: I also plan to sell the euro today if the price tests the 1.1650 level twice consecutively while the MACD indicator is in overbought territory. This would limit the pair's upward potential and trigger a bearish market reversal. In this case, a decline toward the opposite levels of 1.1630 and 1.1601 can be expected.

Chart Notes:

• Thin green line – entry price for buy positions;
• Thick green line – estimated Take Profit level or area for manually locking in profits, as further growth above this level is unlikely;
• Thin red line – entry price for sell positions;
• Thick red line – estimated Take Profit level or area for manually locking in profits, as further decline below this level is unlikely;
• MACD indicator – when entering the market, it is important to follow overbought and oversold zones.

Important: Beginner Forex traders should exercise extreme caution when making market entry decisions. It is best to stay out of the market ahead of major fundamental reports in order to avoid sharp price fluctuations. If you choose to trade during news releases, always use stop-loss orders to minimize potential losses. Without stop-loss protection, you may lose your entire deposit very quickly, especially if you do not apply proper money management and trade large volumes.

Remember that successful trading requires a clear trading plan, similar to the one outlined above. Spontaneous trading decisions based solely on current market conditions are inherently a losing strategy for intraday traders.