Overview of trading and tips on EUR/USD
There were no price tests of the levels I mentioned during the US session. The euro was still in demand, but it was not as active as expected, so EUR/USD did not reach the targets. Yesterday, Federal Reserve Chairman Jerome Powell's speech prevented buyers of risk assets from fully realizing their potential. Today, the situation may change, as PMI data are expected to align in favor of the EURUSD. The Eurozone Services PMI and composite PMI will set the direction for the euro in the first half of the day, and so will the Eurozone Producer Price Index for June. The upcoming speeches by European Central Bank Vice President Luis de Guindos and his colleague, ECB Executive Board member Piero Cipollone, will not be as important as when ECB President Christine Lagarde spoke at the beginning of the week. As for the intraday strategy, I will rely more on the implementation of scenarios No. 1 and 2.
Buy signals
Scenario No 1. Today, you can buy the euro when the price reaches 1.0756 plotted by the green line on the chart, aiming for growth to the level of 1.0800. At the level of 1.0800, 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, but only if the Eurozone Services PMI data shows growth. 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 at 1.0739 when the MACD indicator is in the oversold area. This will limit the downward potential of the instrument and lead to a reverse market upturn. One can expect growth to the opposite levels of 1.0756 and 1.0800.
Sell signals
Scenario No 1. I plan to sell the euro after it reaches the level of 1.0739 plotted by the red line on the chart. The target will be the level of 1.0705, where I am going to exit the market and buy immediately in the opposite direction (expecting a movement of 20-25 pips in the opposite direction from the level). Pressure on EUR/USD will increase in case of news about a sharp contraction in the Eurozone services sector. 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 1.0756 when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a reverse market downturn. One can expect a decline to the opposite levels of 1.0739 and 1.0705.
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 estimated price where you can set Take-Profit (TP) or manually close positions, 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 close positions, 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 forex market need to be very careful 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 in large volumes.
And 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.
