Analysis of transactions in the EUR / USD pair
The first test of 1.0655 occurred at the time when the MACD line was quite far from zero, so the upside potential was limited. Sometime later, a second test took place, but this time the MACD line had just begun to move above zero, which was a good reason to buy. This led to a price increase of around 13 pips. The pair fell after the slight upward movement and headed towards 1.0628.
Although trading volume was quite low in the past days, EUR/USD rose because demand for dollar fell after reports revealed that the foreign trade balance and inventories in wholesale warehouses in the US rose slightly. And since there are no statistics due out in the Euro area today, markets will focus on the upcoming pending home sales in the US. However, the data will not have much impact on the pair as the problems in the real estate market signal a recession, limiting the upside potential of dollar. This could lead to a further rise in EUR/USD.
For long positions:
Buy euro when the quote reaches 1.0665 (green line on the chart) and take profit at the price of 1.0695. Although there is a chance for growth today, it is unlikely to be last long. Also, buy only when the MACD line is above zero or starting to rise from it. Euro can also be bought at 1.0634, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.0665 and 1.0695.
For short positions:
Sell euro when the quote reaches 1.0634 (red line on the chart) and take profit at the price of 1.0597. Pressure will return if the attempts to consolidate at weekly highs fail. But 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 1.0665, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0634 and 1.0597.
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.
