Analysis of trades and trading tips for the European currency
The first price test of 1.0713 in the first half of the day occurred when the MACD indicator was just starting to move down from zero, confirming the correct entry point for selling the euro. As a result, the pair did not move significantly downward, but about 15 points of profit could be observed. Low market volatility is directly related to the absence of important statistics and the Federal Reserve meeting starting tomorrow. During the American session, inflation data for Germany will be released, and there are no other significant statistics, so the euro may receive a good "boost," allowing buyers to demonstrate strength. Without reacting to the data, we will likely have a boring second half of the day. As for the intraday strategy, I plan to act based on the realization of scenarios #1 and #2.
Buy Signal
Scenario #1: I plan to buy the euro when the price reaches around 1.0733 (green line on the chart), with the target of rising to 1.0775. At 1.0775, I will exit the market and sell the euro in the opposite direction, expecting a movement of 30-35 pips from the entry point. Today, the rise of the euro can be expected only after strong statistics from Germany. 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 the event of two consecutive tests of the price of 1.0713 when the MACD indicator is in the oversold zone. This will limit the downward potential of the pair and lead to a reverse market turnaround upwards. Expect a rise to the opposite levels of 1.0733 and 1.0775.
Sell Signal
Scenario #1: I will sell the euro after reaching 1.0713 (red line on the chart). The target will be the level of 1.0671, where I plan to exit the market and buy the euro immediately in the opposite direction (expecting a movement of 20-25 pips in the opposite direction from the level). Pressure on the pair will return without buyer activity 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 the event of two consecutive tests of the price of 1.0733 when the MACD indicator is in the overbought zone. This will limit the upward potential of the pair and lead to a reverse market turnaround downwards. Expect a decline to the opposite level of 1.0713 and 1.0671.
On the chart:
Thin green line - entry price, at which the trading instrument can be bought.
Thick green line - the expected price, where Take Profit can be set or profits can be fixed independently, 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 Take Profit can be set or profits can be fixed independently, 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 very cautious when making trading decisions. It is best to stay out of the market before important fundamental reports to avoid getting caught in sharp exchange rate fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you do not use money management and trade in large volumes.
And remember, for successful trading, it is necessary to have a clear trading plan similar to the one presented above. Spontaneous trading decisions based on the current market situation are initially a losing strategy for an intraday trader.
