Analysis of transactions and tips for trading EUR/USD
The test of 1.0844 occurred during the drop of the MACD line from zero. This provoked a sell signal, which led to a price decrease of over 100 pips.
While the retail sales data in Italy did not affect the market in any way, the report on US inflation influenced sentiment greatly, leading to the strengthening of dollar and a decline in risk appetite. The bear market will likely persist today, as even though the ECB's decision on the key interest rate will remain unchanged, hints from ECB President Christine Lagarde about rate cuts in the middle of the year will surely reduce the buying power of euro bulls.
For long positions:
Buy when euro hits 1.0758 (green line on the chart) and take profit at the price of 1.0789. Growth will occur only if the ECB remains hawkish in its monetary policy.
When buying, make sure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0727, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0758 and 1.0789.
For short positions:
Sell when euro reaches 1.0727 (red line on the chart) and take profit at the price of 1.0692. Pressure will increase in the case of unsuccessful consolidation around the daily high.
When selling, make sure that the MACD line lies under zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0758, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0727 and 1.0692.
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.
