Analysis of transactions in the EUR / USD pair
The first test of 0.9817 happened when the MACD line was just starting to move below zero, which was a good reason to sell. It resulted in a price decrease of over 30 pips. As for purchases at 0.9774, they did not bring the expected result. No other signals appeared for the rest of the day.
Inflation in the Euro area did not exceed 10.0%, amounting to 9.9%. This is a clear slowdown, albeit a small one. However, the ECB is unlikely to change its long-term plans, so the current indicators should be treated calmly.
In the US, reports on the real estate market continue to be mixed, showing an increase in the volume of issued building permits, while the number of new foundations has declined quite a lot.
Today, German's producer price index will be released, followed by the EU Summit. But much more interesting are the reports in the afternoon, which are the weekly jobless claims in the US, index of manufacturing activity from the Philadelphia Fed and sales in the secondary housing market. FOMC members will also deliver speeches, where they are likely to be hawkish as the Fed continues to prepare markets for another rate hike.
For long positions:
Buy euro when the quote reaches 0.9800 (green line on the chart) and take profit at the price of 0.9837. Growth will occur after the breakdown of 0.9800.
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 0.9765, but the MACD line should be in the oversold area as only by that will the market reverse to 0.9800 and 0.9837.
For short positions:
Sell euro when the quote reaches 0.9765 (red line on the chart) and take profit at the price of 0.9725. Pressure will intensify if the attempt of traders to push prices up fails, and if statistics in the US come out much better than expected.
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 0.9800, but the MACD line should be in the overbought area as only by that will the market reverse to 0.9765 and 0.9725.
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.
