Although there were no signs of recession, GDP data in the Euro area was slightly disappointing, indicating that the economy is not as strong as expected. This is why the ECB may continue an aggressive policy in order to curb high inflation. As for the price test of 1.1006, it occurred when the MACD line just began its downward move from zero, so the pair was able to decline by around 30 pips.
Ahead are key reports on the US economy, such as the index of personal consumption expenditures, change in the level of consumer spending and change in the level of consumer income. All these could push EUR/USD lower. The Chicago PMI data and consumer sentiment from the University of Michigan will be of lesser importance.
For long positions:
Buy euro when the price hits 1.1010 (green line on the chart) and then take-profit when the quote reaches the level of 1.1057. Growth will continue if there is a very sharp decline in US inflation. However, before buying, make sure that the MACD line is above zero and is starting to rise from it.
Euro can also be bought after the level of 1.0979 is tested twice, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1010 and 1.1057.
For short positions:
Sell euro when the price reaches 1.0979 (red line on the chart) and take-profit at the level of 1.0939. Pressure will return if the US reports good statistics. 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 after the level of 1.1010 is tested twice, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0979 and 1.0939.
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.
