The test of 1.0923, coinciding with the significant rise of the MACD line from zero, limited the upward potential in the pair. Shortly after, another test occurred, but the market signal shifted into selling, which should have led to a price decrease. The pair did not show any decline until now.
Market players will focus on the speech of Fed Chairman Jerome Powell, so there should be some movement. Statements regarding further efforts to combat inflation and the high likelihood of interest rate hikes should provoke a decline in euro and an increase in US dollar. But if Powell chooses a more dovish position, euro will return to growth.
For long positions:
Buy when euro hits 1.0931 (green line on the chart) and take profit at the price of 1.0965. Growth will occur after a dovish speech from Jerome Powell. However, before buying, traders should make sure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0909, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0931 and 1.0965.
For short positions:
Sell when euro reaches 1.0909 (red line on the chart) and take profit at the price of 1.0879. Pressure may return amid hawkish comments from Fed representatives. However, before selling, traders should make sure that the MACD line lies below zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0931, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0909 and 1.0878.
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.
