Although inflation in France was more resilient than expected and consumer prices in Spain were the same as forecasts, euro failed to stay at its highs as traders await important statistics from the US. That is also why volatility was rather low, which prevented movement to any target level. But there is nothing to worry about as the upcoming US retail sales report will set the market's direction. Weak data and a reduction in indicators will bring back demand for euro, leading to a sharp surge upwards. Meanwhile, a sharp increase in retail trade will force traders to close positions, resulting in a more powerful sell-off.
EUR/USD
For long positions:
Buy euro when the price hits 1.1076 (green line on the chart) and then take-profit when the quote reaches the level of 1.1111. Weak sales data and the inflation index from the University of Michigan will restore demand for euro. However, before buying, make sure that the MACD line is above zero and is starting to rise from it.
Euro can also be bought at 1.1049, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.1076 and 1.1111.
For short positions:
Sell euro when the price reaches 1.1049 (red line on the chart) and take-profit at the level of 1.1013. However, before selling, make sure that the MACD line is below zero and is starting to drop down from it.
Euro can also be sold at 1.1076, but the MACD line should be in the overbought area as only by that will the market reverse to 1.1049 and 1.1013.
What's on the chart:
Thin green line - entry price at which you can buy EUR/USD
Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.
Thin red line - entry price at which you can sell EUR/USD
Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.
MACD line- it is important to be guided by overbought and oversold areas when entering the market
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.
