Analysis of transactions in the EUR / USD pair
A signal to sell emerged after EUR/USD hit 1.1154. Coincidentally, the MACD line was starting to move below zero, so the pair fell by about 60 pips. It went all the way to 1.1091, where long positions brought around 20 pips of profit.
Risk appetite fell amid weak German retail sales report and a sharp surge in inflationary pressures in France and Italy. At the same time, the risk of higher inflation in the US keeps dollar buyers active, thereby lowering the rate of EUR/USD.
A number of important statistics on the eurozone are coming out today, and those may increase pressure in euro, provided that the figures were much worse than expected. In the afternoon, the US will release data on the labor market, which could further strengthen demand for dollar and bring EUR/USD down to weekly lows.
For long positions:
Buy euro when the quote reaches 1.1080 (green line on the chart) and take profit at the price of 1.1136 (thicker green line on the chart). However, a further increase is unlikely today because ahead is an important report on the US labor market.
In any case, when buying, make sure that the MACD line is above zero or is starting to rise from it. It is also possible to buy at 1.1056, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1080 and 1.1136.
For short positions:
Sell euro when the quote reaches 1.1056 (red line on the chart) and take profit at the price of 1.0995. Pressure will return if data on the EU economy comes out much weaker than expected.
But before selling, make sure that the MACD line is below zero, or is starting to move down from it. Euro can also be sold at 1.1080, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.1056 and 1.0995.
What's on the chart:
The thin green line is the key level at which you can place long positions in the EUR/USD pair.
The thick green line is the target price, since the quote is unlikely to move above this level.
The thin red line is the level at which you can place short positions in the EUR/USD pair.
The thick red line is the target price, since the quote is unlikely to move below this level.
MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.
Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.
And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.
