Analysis of transactions in the EUR / USD pair
The first test of 1.0634 occurred at a time when the MACD line was quite far from zero, so the downside potential was limited. Sometime later, a second test took place, but this time the market signal was to buy, which resulted in a price increase of around 20 pips. 1.0665 was tested in the afternoon.
EUR/USD rose slightly on Wednesday after the US reported very weak data on pending home sales. However, the situation leveled off quickly as ahead are reports on the Euro area's M3 money supply and private sector lending, which are likely to put a lot of pressure on euro. Then, this afternoon, the US will release its weekly data on jobless claims.
For long positions:
Buy euro when the quote reaches 1.0634 (green line on the chart) and take profit at the price of 1.0668. Although there is a chance for growth today, it is unlikely to last long. Also, buy only when the MACD line is above zero or starting to rise from it. Euro can also be bought at 1.0606, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.0634 and 1.0668.
For short positions:
Sell euro when the quote reaches 1.0606 (red line on the chart) and take profit at the price of 1.0573. Pressure will return if reports from the Euro area turn out to be weaker than expected. Failed consolidation at 1.0606 will also lead to a decline. 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 1.0634, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0606 and 1.0573.
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.
