Trade analysis and tips for trading the European currency
In the first half of the day, there were no trades at the levels I indicated due to very low euro volatility, which was expected due to the absence of significant fundamental statistics that could influence the market. For this reason, finding suitable entry points into the market was impossible. Unfortunately, during the American session, there was also no data capable of significantly moving the market, so I expected the same weak volatility with trading within a sideways channel. As for the intraday strategy, I will rely more on scenarios 1 and 2.
Buy Signal
Scenario 1: Today, I plan to buy the euro when the price reaches around 1.0841 (green line on the chart), with a target of rising to 1.0864. At point 1.0864, I will exit the market and sell the euro in the opposite direction, expecting a movement of 30-35 points from the entry point. It is unlikely to count on the euro's rise today. It's better to act on selling further along the trend. Important! Before buying, ensure the MACD indicator is above the zero mark and just starting to rise from it.
Scenario 2: I also plan to buy the euro today in case of two consecutive tests of the price at 1.0822 when the MACD indicator is in oversold territory. This will limit the downward potential of the pair and lead to a reversal of the market upwards. Expect a rise to the opposite levels of 1.0841 and 1.0864.
Sell Signal
Scenario 1: I will sell the euro after reaching 1.0822 (red line on the chart). The target will be the level of 1.0804, where I plan to exit the market and buy the euro immediately in the opposite direction (expecting a movement of 20-25 points in the opposite direction from the level). Pressure on the pair will return without active buyer actions around the daily maximum. Important! Before selling, make sure that the MACD indicator is below the zero mark and just starting to decline.
Scenario 2: I also plan to sell the euro today in case of two consecutive tests of the price at 1.0841 when the MACD indicator is in overbought territory. This will limit the upward potential of the pair and lead to a reversal of the downward market. Expect a decline to the opposite levels of 1.0822 and 1.0804.
What's on the chart:
Thin green line – entry price, at which the trading instrument can be bought.
Thick green line – the expected price where you can set Take Profit or manually take profits, as further growth above this level is unlikely.
Thin red line – entry price at which the trading instrument can be sold.
Thick red line – the expected price where you can set Take Profit or manually take profits, as further decline below this level is unlikely.
MACD indicator. When entering the market, following the overbought and oversold zones is important.
Important. Beginner traders in the forex market must be careful when making entry decisions. It is best to stay out of the market before important fundamental reports are released to avoid being caught in sharp exchange rate fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. You can quickly lose your deposit without placing stop orders, especially if you do not use money management and trade in large volumes.
And remember, for successful trading, you need to have a clear trading plan similar to the one I presented above. Spontaneous trading decisions based on the current market situation are inherently a losing strategy for an intraday trader.
