Analysis of transactions in the EUR / USD pair
EUR/USD tested 1.0142 last Friday. At that time, the MACD line was just starting to move below zero, so selling was quite appropriate. This prompted more than 60 pips of price decrease. Some time later, buyers became active around 1.0100. In turn, the pair rose by about 40 pips. No other signal appeared for the rest of the day.
Friday's speech of ECB chief Christine Lagarde was a reason to sell euro because the outlook for the eurozone economy is becoming increasingly vague, especially in light of geopolitical tensions. Meanwhile, the increase in the average hourly wage in the US and sharp jump in new jobs in the non-farm sector did not provide much support to the dollar.
There are no important reports sceduled to be releasd today, so trading will be calm. However, there is a chance that EUR/USD will continue to fall as the upcoming Eurogroup meeting is unlikely to bring significant changes to the market. In the afternoon, the US will publish the index of trends in the labor market, which is not of great interest. The speech of FOMC member John Williams is also unlikely to affect the market. In this way, euro sellers have every chance of resuming the downward trend.
For long positions:
Buy euro when the quote reaches 1.0151 (green line on the chart) and take profit at the price of 1.0192 (thicker green line on the chart). There is little chance for a rally today, especially after Friday's statistics on the US and statements from the European Central Bank. Nevertheless, when buying, the MACD line should be above zero or is starting to rise from it. Euro can also be bought at 1.0120, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0151 and 1.0192.
For short positions:
Sell euro when the quote reaches 1.0120 (red line on the chart) and take profit at the price of 1.0075. Pressure will gradually return as there are no reasons to build up long positions in risky assets. However, when selling, the MACD line should be below zero or is starting to move down from it. Euro can also be sold at 1.0151, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.0120 and 1.0075.
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 decision based on the current market situation is an inherently losing strategy for an intraday trader.
