Overview of trading and tips on EUR/USD
The price test of 1.0713 in the afternoon occurred at a time when the MACD indicator had sharply dropped from the zero mark. Nevertheless, I sold the euro because I anticipated a strong movement after the release of US inflation data. As a result, the pair fell by more than 35 pips. In the morning, eurozone data on changes in the M3 money supply aggregate and the volume of lending to the private sector did not exert pressure so the EUR/USD pair still had the chance to rise. However, the US Personal Consumption Expenditures (PCE) index supported the dollar as the data exceeded economists' forecasts, intensifying concerns about a prolonged period of high interest rates from the Federal Reserve. Today, market participants may look to the release of inflation data in Spain and Germany. Obviously, traders will focus on Germany, but the figures must deviate significantly from forecasts in order for the market to show a particular reaction. The fact that prices in Germany may continue to rise for the fourth consecutive month speaks for itself and indirectly all of this may affect the plans of the European Central Bank. As for the intraday strategy, I will rely more on the implementation of scenarios No. 1 and No. 2.
Buy signals
Scenario No 1. Today, you can buy the euro when the price reaches the area around 1.0733 plotted by the green line on the chart, aiming for growth to the level of 1.0775. At the level of 1.0775, I plan to exit the market and also sell the euro in the opposite direction, counting on a movement of 30-35 pips from the entry point. You can count on the euro to rise today only after good data in Germany, in continuation of the uptrend. Before buying, make sure that the MACD indicator is above the zero mark and is just starting to rise from it.
Scenario No 2. I am also going to buy the euro today in case of two consecutive tests of the price of 1.0713 at the time when the MACD indicator is in the oversold area. This will limit the downward potential of the instrument and lead to an upward reversal of the market. We can expect growth to the opposite levels of 1.0733 and 1.0775.
Sell signals
Scenario No 1. I plan to sell the euro after EUR/USD reaches the level of 1.0713 plotted by the red line on the chart. The target will be the level of 1.0671, where I am going to exit the market and buy immediately in the opposite direction (expecting a movement of 20-25 pips in the upward direction from the level). Pressure on EUR/USD will increase if it fails to consolidate in the area of the daily high and after weak data from Germany. Before selling, make sure that the MACD indicator is below the zero mark and is just starting to decline from it.
Scenario No 2. I am also going to sell the euro today in case of two consecutive price tests of 1.0733 at the time when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward reversal of the market. We can expect a decline to the opposite level of 1.0713 and 1.0671.
What's on the chart:
The thin green line is the entry price at which you can buy the trading instrument.
The thick green line is the price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.
The thin red line is the entry price at which you can sell the trading instrument.
The thick red line is the 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 in the cryptocurrency market need to be very cautious when making decisions to enter the market. It is best to stay out of the market before important fundamental reports are released to avoid getting caught in sharp price fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you don't use money management and trade with large volumes.
Remember, for successful trading, it is necessary to have a clear trading plan, similar to the one I presented above. Spontaneously making trading decisions based on the current market situation is inherently a losing strategy for an intraday trader.
