Analysis of transactions in the EUR / USD pair
Euro tested 0.9893 at the time when the MACD was far from zero, which limited the downside potential of the pair. Sometime later, it tested the level again, but this time the market signal that was to buy, which led to a price increase of around 60 pips. No other signals appeared for the rest of the day.
The Q2 GDP data of the Euro area was revised upwards, which led to a slight increase of EUR/USD on Wednesday morning. Although sellers attempted to push the quote to the yearly lows, no such thing happened.
Today, markets are waiting for the decision of the ECB on interest rate, as well as the report on monetary policy and press conference at which Christine Lagarde will announce further plans to raise interest rates. Euro could strengthen and gain a foothold above parity, but only if the policy continues to be aggressive. In the afternoon, the US will release data on jobless claims, followed by a speech from Fed Chairman Jerome Powell. He might hint at further rate hikes, which would put pressure back on euro and prompt a stronger dollar. Data on the volume of consumer lending will not affect the market in any way, especially after such statistics.
For long positions:
Buy euro when the quote reaches 1.0010 (green line on the chart) and take profit at the price of 1.0085. Growth may occur if the European Central Bank raises rates by 0.75%.
Take note that when buying, the MACD line should be above zero or is starting to rise from it. Euro can also be bought at 0.9985, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0010 and 1.0085.
For short positions:
Sell euro when the quote reaches 0.9985 (red line on the chart) and take profit at the price of 0.9941. Pressure will return if traders are disappointed by the decision of the ECB.
Take note that when selling, the MACD line should be below zero or is starting to move down from it. Euro can also be sold at 1.0010, but the MACD line should be in the overbought area, as only by that will the market reverse to 0.9985 and 0.9941.
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.
