Analysis of transactions in the EUR / USD pair
EUR/USD reaching 1.0624 led to a buy signal in the market. Coincidentally, the MACD line was just starting to move above zero, so the pair rose by 50 pips. It hit 1.0673, where sellers became active and worked for a rebound. As such, a correction of about 20 pips took place. No other signal appeared for the rest of the day.
Data on Germany's business environment, present situation and economic expectations were missing yesterday, so there was nothing much for traders to rely on. But euro did get support from rumors that the ECB may decide on more aggressive rate hikes at the next monetary policy meetings. Talks that the Fed may further postpone rate increases starting September also put pressure on the dollar and raised risk appetite.
Today, a fairly large number of statistics on the eurozone will be released, and these are business activities in the manufacturing and services sector, as well as the composite PMI of the whole Euro area. There will also be another interview with ECB President Christine Lagarde. In the afternoon, similar reports from the US will be published, which, if shows even a slight slowdown in growth, will negatively affect the dollar. By the middle of the American session, an interview with Fed Chairman Jerome Powell will take place, and this may shed light on the situation with interest rates. Data on the volume of home sales in the US primary market will have little to no effect on the market.
For long positions:
Buy euro when the quote reaches 1.0689 (green line on the chart) and take profit at the price of 1.0725 (thicker green line on the chart). There is a chance for a rally today, but only after very good data on economic activity. Nevertheless, make sure that when buying, the MACD line is above zero or is starting to rise from it. It is also possible to buy at 1.0661, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0689 and 1.0725.
For short positions:
Sell euro when the quote reaches 1.0661 (red line on the chart) and take profit at the price of 1.0620. Pressure will return if there is no bullish activity in the pair after good statistics on economic activity. However, note that when selling, make sure that the MACD line is below zero, or is starting to move down from it. Euro can also be sold at 1.0689, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.0661 and 1.0620.
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.
