EUR/USD: Simple Trading Tips for Beginner Traders on October 15. Review of Yesterday's Forex Trades

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Trade Review and Trading Advice for the Euro

The test of the 1.1565 price level occurred when the MACD indicator began to move upward from the zero line, confirming a valid entry point for buying the euro. As a result, the pair climbed toward the target level at 1.1599.

Following comments made by Federal Reserve Chair Jerome Powell indicating a planned 25-basis-point rate cut by the end of the month, the U.S. dollar experienced a sharp decline. The announcement triggered a broad sell-off in the greenback across global markets, as investors reassessed their expectations for future Fed policy. Powell emphasized that the U.S. economy remains stable but noted that risks related to the labor market call for vigilance and may warrant further easing.

This morning, market participants await the French Consumer Price Index (CPI) and Eurozone industrial production data for August. The French CPI, a key measure of inflation, will show how effectively the country is managing price growth. Readings above forecasts may signal stronger inflationary pressure, reinforcing the ECB's cautious policy stance. The Eurozone's industrial production data will also be important, as it reflects the health of the manufacturing sector—a key component of economic growth. A decline may suggest growth is slowing and could put pressure on the euro.

For today's intraday strategy, I will focus on the implementation of Scenarios 1 and 2.

Buy Scenarios

Scenario 1: I plan to buy the euro today if the price reaches 1.1630 (thin green line on the chart), targeting a rise toward 1.1663. Upon reaching 1.1663 (thick green line), I will exit the market and consider selling the euro on a reversal, expecting a pullback of 30–35 pips from the entry point. A long position is justified only if the incoming data is positive.

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

Scenario 2: I also plan to buy the euro today in the event of two consecutive tests of the 1.1615 level, while the MACD indicator is in the oversold zone. This would limit the pair's downside potential and could lead to an upward reversal toward the 1.1630 and 1.1663 targets.

Sell Scenarios

Scenario 1: I plan to sell the euro if the price reaches 1.1615 (thin red line on the chart), aiming for a decline toward 1.1588. At that level (thick red line), I will exit the short position and potentially buy on a bounce, expecting a 20–25 pip rebound. Market pressure on the pair is unlikely to persist today.

Important: Before selling, ensure that the MACD indicator is below the zero line and just beginning to move downward.

Scenario 2: I also plan to sell the euro today if there are two consecutive tests of the 1.1630 level (buy entry level) and the MACD is in the overbought zone. This would limit the pair's upside potential and could result in a reversal down to 1.1615 and possibly 1.1588.

Chart Notes

• Thin green line: Entry level for buy positions
• Thick green line: Target level for taking profit or manually exiting a long position
• Thin red line: Entry level for sell positions
• Thick red line: Target level for taking profit or manually exiting a short position
• MACD indicator: Use overbought and oversold zones as guidance for trade timing

Important for Beginners

Beginner traders in the forex market should make trade decisions with utmost caution. During the release of key economic data, it is often best to stay out of the market to avoid erratic price swings. If you choose to trade during such events, always use stop-loss orders to control risk. Trading without stop-losses can result in rapid loss of your entire deposit, especially if proper money management practices are not in place.

And remember: successful trading requires a clear, structured plan—such as the one presented here. Random trade decisions based on short-term price fluctuations are not a viable strategy for any intraday trader.

The material has been provided by InstaForex Company - www.instaforex.com