Analysis of trades and tips for trading the euro
The test of the 1.0872 price occurred when the MACD indicator had already moved significantly below the zero mark, limiting the pair's further downward potential. For this reason, I did not sell the euro. Due to low volatility, no other entry points were formed. The lack of economic data affected trading volumes, and a similar situation is likely in the second half of the day. Besides the speeches from Federal Reserve representatives, nothing interesting is expected during the US session, so it is best to bet on further declines in EUR/USD and increasing pressure on the pair. Any comments from the Fed about inflation will be interpreted in favor of buying the dollar. As for the intraday strategy, I plan to act based on implementing Scenarios 1 and 2.
Buy Signal
Scenario 1: Today, I plan to buy the euro upon reaching the price area of 1.0881 (green line on the chart), with a target of rising to the 1.0911 level. At 1.0911, I will exit the market and sell the euro in the opposite direction, aiming for a movement of 30–35 points from the entry point. Expect euro movement within a sideways channel today, as there are no reasons for a strong rise. Important! Before buying, ensure the MACD indicator is above the zero mark and starting to rise.
Scenario 2: I also plan to buy the euro today in case of two consecutive tests of the 1.0865 price when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. You can expect a rise to the opposite levels of 1.0881 and 1.0911.
Sell Signal
Scenario 1: I will sell the euro after reaching the 1.0865 level (red line). The target will be the 1.0843 level. I plan to exit the market and buy the euro immediately in the opposite direction (aiming for a movement of 20–25 points in the opposite direction from the level). Pressure on the pair will return only after an unsuccessful attempt to break through the daily high. Important! Before selling, please ensure the MACD indicator is below the zero mark and starting to decline.
Scenario 2: I also plan to sell the euro today in case of two consecutive tests of the 1.0881 price when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. You can expect a decline to the opposite levels of 1.0865 and 1.0843.
Chart Explanation:
- Thin green line: Entry price for buying the trading instrument.
- Thick green line: Estimated price for setting Take Profit or manually fixing profits, as further growth above this level is unlikely.
- Thin red line: Entry price for selling the trading instrument.
- Thick red line: Estimated price for setting Take Profit or manually fixing profits, as further decline below this level is unlikely.
- MACD Indicator: Following overbought and oversold zones is important when entering the market.
Important: Beginner traders in the forex market should be cautious when making entry decisions. To avoid sharp price fluctuations, it is best to stay out of the market before important fundamental reports are released. If you decide to trade during news releases, always set stop orders to minimize losses. You can quickly lose your entire deposit without stop orders, especially if you do not use money management and trade in large volumes.
Remember, successful trading requires a clear plan like the one presented above. Spontaneous trading decisions based on the current market situation are a losing strategy for intraday traders.
