The test of 1.1220, coinciding with the drop of the MACD line from zero, prompted a sell signal that led to a price decrease of around 19 pips. Demand returned shortly after.
Inflation data in the eurozone matched expectations. However, core prices turned out to be higher than forecasts, showing growth after a month of decline. This allowed euro to maintain its positions.
As for today, upcoming data on the construction sector could put pressure on EUR/USD and provoke a correction. Strong figures on the volume of issued building permits and number of new foundations laid in the US could trigger a sell-off, which may lead to a spike towards 1.1242.
For long positions:
Buy when euro hits 1.1242 (green line on the chart) and take profit at the price of 1.1283. Although strong growth may not be possible, traders could still buy as long as the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.1209, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1242 and 1.1283.
For short positions:
Sell when euro reaches 1.1209 (red line on the chart) and take profit at the price of 1.1166. Pressure will increase in the case of good indicators on the US housing construction sector. However, when 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 1.1242, but the MACD line should be in the overbought area as only by that will the market reverse to 1.1209 and 1.1166.
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.
