Analysis of transactions in the EUR / USD pair
The test of 1.0244 happened when the MACD line went up quite a lot from zero, which limited the upward potential of the pair. In the afternoon, sell-offs surged around 1.0317, prompting a price decrease of about 30 pips. No other signals appeared for the rest of the day.
CPI in Germany, as well as forecasts for the EU economy, did not affect the market. But today, the upcoming report on industrial output and speeches of ECB representatives may prompt growth in euro, albeit not as rapid as last week's. By afternoon, the situation could even put as there are no statistics scheduled to be released.
For long positions:
Buy euro when the quote reaches 1.0325 (green line on the chart) and take profit at the price of 1.0383. Growth is likely to occur, especially if the statements by ECB representatives remain hawkish. But remember that when buying, the MACD line should be above zero or is starting to rise from it.
Euro can also be bought at 1.0283,, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.0325 and 1.0383.
For short positions:
Sell euro when the quote reaches 1.0283 (red line on the chart) and take profit at the price of 1.0231. Pressure will return after unsuccessful consolidation above monthly highs and weak reports on the eurozone. 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 1.0325, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0283 and 1.0231.
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.
