Analysis of Trades and Tips for Trading the Euro
The test of the 1.0921 price level occurred when the MACD indicator had already moved significantly upward from the zero mark. This clearly limited the pair's upward potential, especially considering the market's bearish nature. For this reason, I did not buy euros and waited for the implementation of scenario #2 for selling, which I often use in my strategy. Shortly thereafter, another test of 1.0921 occurred, and at that moment the MACD indicator was in the overbought area, confirming the correct entry point for a sale. As a result, the pair went down about 15 points and then the movement stopped. Data from the Eurozone did not surprise, and it is expected that the US reports scheduled for today will also align with traders' predictions. Only consumer credit volume data from the US is expected, so strong and directional movements are not anticipated. Regarding the intraday strategy, I plan to act based on the implementation of scenario #2.
Buy Signal
Scenario #1: Today, I plan to buy euros upon reaching the price around 1.0930 (green line on the chart) with the target of rising to the level of 1.0953. At the 1.0953 point, I will exit the market and sell euros in the opposite direction, expecting a movement of 30-35 points from the entry point. A small upward movement of the euro can be expected today only after weak US data. Important: Before buying, make sure the MACD indicator is above the zero mark and just starting to rise from it.
Scenario #2: Today, I also plan to buy euros in the case of two consecutive tests of the 1.0910 price when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a market reversal upward. You can expect a rise to the levels of 1.0930 and 1.0953.
Sell Signal
Scenario #1: I will sell euros after reaching the level of 1.0910 (red line on the chart). The target will be the level of 1.0884, where I plan to exit the market and buy euros immediately in the opposite direction (expecting a movement of 20-25 points in the opposite direction from the level). Pressure on the pair will return if it fails to rise above the daily high. Important: Before selling, make sure the MACD indicator is below the zero mark and just starting to decline from it.
Scenario #2: Today, I also plan to sell euros in the case of two consecutive tests of the 1.0930 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 1.0910 and 1.0884.
What's on the Chart:
- Thin green line – entry price for buying the trading instrument.
- Thick green line – suggested price for setting Take Profit or manually taking profits, as further growth above this level is unlikely.
- Thin red line – entry price for selling the trading instrument.
- Thick red line – suggested price for setting Take Profit or manually taking profits, as further decline below this level is unlikely.
- MACD Indicator: When entering the market, it is important to be guided by overbought and oversold zones.
Important:
Beginner forex traders must be very cautious when making market entry decisions. Before the release of important fundamental reports, it is best to stay out of the market to avoid getting caught in sharp price 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 large volumes.
And remember, successful trading requires a clear trading plan, like the one presented above. Making spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.
