Analysis of transactions in the EUR / USD pair EUR/USD reaching 1.0495 led to a buy signal in the market. But since the MACD line had been in the oversold area for quite a long time, a divergence was formed, resulting in the pair going to 1.0537. Some time later, a test of 1.0537 took place, which coincided with the MACD line being in the overbought area. This led to sell-offs in euro and a dip to 1.0495. Another buy signal was formed around that level.
Pressure in EUR/USD rose because of the latest CPI data from Germany. But by afternoon, the sell-offs eased amid a weaker-than-expected report on US 1st quarter GDP. Today, the markets will see GDP reports of eurozone countries, along with CPI data on both EU and Italy. If inflation rises more than expected, the pair will decline even more. In the afternoon, the US will release reports on income and expenses, followed by the consumer sentiment index and inflation expectations index from the University of Michigan. If the figures show some decrease, demand for dollar will turn down, which will accordingly lead to a rise in EUR/USD. For long positions:Buy euro when the quote reaches 1.0555 (green line on the chart) and take profit at the price of 1.0615 (thicker green line on the chart). A rally is highly likely today, especially amid weak economic data from the US. But 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 1.0510, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0555 and 1.0615. For short positions:Sell euro when the quote reaches 1.0510 (red line on the chart) and take profit at the price of 1.0459. Pressure will return if GDP data of Eurozone countries turn 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 1.0555, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0510 and 1.0459.
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.
