Analysis of transactions in the EUR / USD pair
EUR/USD reaching 1.0737 led to a sell signal in the market, however, having the MACD line far away from zero limited the downside potential of the pair. Its second test was more successful as the pair fell and reached 1.0704. There, traders opened long positions, prompting a more than 30-pip increase in price.
Although the reports on the M3 aggregate of the money supply and volume of lending in the private sector of the Eurozone were ignored by the market, euro still fell on Friday morning. But in the afternoon there was a correction as the data on US income put pressure on dollar.
Today, the only statistics scheduled to be released are the import price index and volume of retail trade in Germany. A significant reduction in their figures will return pressure on the euro, but in the afternoon, volatility will drop altogether as it is a public holiday in the US and the markets will be closed.
For long positions:
Buy euro when the quote reaches 1.0775 (green line on the chart) and take profit at the price of 1.0820 (thicker green line on the chart). There is a chance for a rally today, but it will not be very strong. 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 1.0745, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0775 and 1.0820.
For short positions:
Sell euro when the quote reaches 1.0745 (red line on the chart) and take profit at the price of 1.0704. Pressure will return if the pair does not break through the monthly highs in the morning. 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 1.0775, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.0745 and 1.0704.
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.
