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25.08.2025 06:55 PM
EUR/USD: Simple Trading Tips for Beginner Traders on August 25th (U.S. Session)

Trade Review and Tips for Trading the Euro

The price test of 1.1713 coincided with the moment when the MACD indicator had just started moving upward from the zero line, which confirmed a correct entry point for buying the euro. However, the pair failed to develop a strong upward move.

Even strong IFO data on the rise in Germany's Economic Conditions Index and Economic Expectations Index did not support growth. The published figures, reflecting an unexpected improvement in business climate, provided some support to the euro, but this support seems insufficient. First, there remains a high degree of uncertainty regarding the European Central Bank's next steps. Investors are cautious in assessing the prospects for rate cuts. Second, inflation risks remain a serious issue after the introduction of trade tariffs by Trump.

A positive report on the increase in U.S. new home sales later in the day may trigger a stronger dollar rally. Market participants will closely study macroeconomic indicators, and a stable increase in housing sales, particularly in the primary market, could support the U.S. economy. In such a case, dollar strengthening will negatively impact the euro.

As for intraday strategy, I will rely more on the implementation of Scenario #1 and Scenario #2.

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Buy Signal

Scenario #1: Today, buying the euro is possible when the price reaches the level of 1.1702 (green line on the chart), with a growth target at 1.1737. At 1.1737, I plan to exit the market and also sell the euro in the opposite direction, aiming for a move of 30–35 points from the entry point. A stronger euro rise can be expected if weak U.S. data continues Friday's trend. Important: Before buying, make sure the MACD indicator is above the zero line and just starting its upward movement.

Scenario #2: I also plan to buy the euro today if the price at 1.1682 is tested twice while the MACD indicator is in the oversold zone. This will limit the pair's downward potential and lead to a reversal upward. Growth can be expected toward the opposite levels of 1.1702 and 1.1737.

Sell Signal

Scenario #1: I plan to sell the euro after the price reaches 1.1682 (red line on the chart). The target will be 1.1652, where I plan to exit and immediately buy in the opposite direction (expecting a move of 20–25 points from that level). Selling pressure will return today if U.S. data is strong. Important: Before selling, make sure the MACD indicator is below the zero line and just starting its downward movement.

Scenario #2: I also plan to sell the euro today if the price at 1.1702 is tested twice while the MACD indicator is in the overbought zone. This will limit the pair's upward potential and lead to a downward reversal. A decline toward 1.1682 and 1.1652 can then be expected.

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Chart Notes

  • Thin green line – entry price for buying the instrument.
  • Thick green line – projected price where Take Profit can be placed, or profits can be fixed manually, as further growth above this level is unlikely.
  • Thin red line – entry price for selling the instrument.
  • Thick red line – projected price where Take Profit can be placed, or profits can be fixed manually, as further decline below this level is unlikely.
  • MACD indicator – when entering the market, it is important to rely on overbought and oversold zones.

Important: Beginner Forex traders should be very cautious when deciding to enter the market. Before the release of important fundamental reports, it is best to stay out of the market to avoid sharp price swings. If you choose to trade during news releases, always place stop-loss orders to minimize losses. Without stop-losses, you can quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

Remember, successful trading requires a clear trading plan, such as the one I presented above. Spontaneous decision-making based only on the current market situation is an inherently losing strategy for an intraday trader.

Jakub Novak,
Analytical expert of InstaTrade
© 2007-2025

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