22.01.202609:09 Forex Analysis & Reviews: EURUSD: simple trading tips for beginner traders for January 22. Review of yesterday's forex trades

Trade review and tips for trading the European currency

The price test at 1.1719 occurred when the MACD indicator was just beginning to move above the zero line, confirming the correct entry point to buy the euro. As a result, the pair rose by 20 pips.

However, after a small rise in the euro in the second half of the day, the US currency was unexpectedly supported by a statement from President Donald Trump about suspending the introduction of tariffs against the European Union. Trump was satisfied with the preliminary agreement on Greenland and decided not to aggravate trade relations with the EU by imposing new tariffs. Details of the discussions remain secret, but the fact of negotiations indicates the parties' desire to reach a mutually acceptable solution.

This morning, investors' attention will be focused on the publication of the eurozone consumer confidence index and the ECB meeting minutes. The consumer confidence index is a key indicator reflecting the sentiments and expectations of European households. A rise in the index signals optimism and a willingness to spend, which can boost economic growth and may help the euro recover against the dollar. A decline, conversely, indicates concern and a tendency to save, which can exert further pressure on the EUR/USD pair.

The ECB minutes are no less important. They will reveal details of the discussions held at the last monetary policy meeting and justify the decisions made. Investors will look for signals about the ECB's future policy on interest rates. Any shift in the ECB's tone could materially affect the euro's exchange rate and market sentiment.

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

Buy scenarios

Scenario No.1: Today, one can buy the euro at around 1.1698 (the green line on the chart), with a target of 1.1716. At 1.1716, I plan to exit the market and sell the euro on the reversal, aiming for a 30–35-pip move from the entry point. Expect euro gains only after good data. Important! Before buying, make sure the MACD indicator is above the zero line and is just starting to rise from it.

Scenario No.2: I also plan to buy the euro today if the 1.1683 price is tested twice in a row while the MACD indicator is in the oversold area. This will limit the pair's downside potential and lead to an upward reversal. One can expect a rise to the opposite levels, 1.1698 and 1.1716.

Sell scenarios

Scenario No. 1: I plan to sell the euro once it reaches 1.1683 (the red line on the chart). The target will be 1.1657, where I plan to exit the market and buy immediately on the rebound (expecting a 20–25-pip move back from that level). Pressure on the pair may only increase today. Important! Before selling, make sure the MACD indicator is below the zero line and is just starting to decline from it.

Scenario No.2: I also plan to sell the euro today if the MACD indicator is in the overbought area and the price tests 1.1698 twice. This will limit the upside potential and trigger a reversal downward. One can expect a decline to the opposite levels 1.1683 and 1.1657.

What is on the chart

• Thin green line — entry price at which you can buy the instrument
• Thick green line — suggested Take Profit price or level at which to manually lock in profit, since further rise above this level is unlikely.
• Thin red line — entry price at which you can sell the instrument
• Thick red line — suggested Take Profit price or level at which to manually lock in profit, since further decline below this level is unlikely.
• MACD indicator — when entering the market, it is important to follow the overbought and oversold zones
• Important notes: Beginner forex traders must be very cautious when deciding to enter the market. It is best to be out of the market before major fundamental reports are released to avoid being caught in sharp price swings. If you decide to trade during news releases, always place stop orders to minimize losses. Without stop orders, you can lose your entire deposit quickly, especially if you do not use money management and trade large volumes.
• Remember that successful trading requires a clear trading plan like the one presented above. Spontaneous trading decisions based on current market noise are a losing strategy for the intraday trader.