Analysis of trades and tips on EUR/USD
The price test of 1.1000 occurred when the MACD indicator started to move downward from the zero mark, which provided a suitable entry point for selling the euro. As a result, the EUR/USD pair dropped more than 30 pips. I did not make any purchases at 1.0971, as the pair sharply fell, and I did not observe an immediate return from that level. The euro's downward movement occurred due to strong U.S. retail sales data, which reassured traders about the not-so-dire state of the U.S. economy, pushing fears of a recession to a later date. Today, we only have the eurozone's trade balance data for the first half of the day, so the story of the lack of volatility, similar to yesterday, may repeat itself. I lean towards maintaining trading within the horizontal channel and plan to act accordingly. As for the intraday strategy, I will rely more on implementing scenarios No. 2.
Buy signals
Scenario No 1. Today, you can buy the euro when the price reaches around 1.1002, plotted by the green line on the chart, with the goal of rising to 1.1025. At 1.1025, I plan to exit the market and sell the euro in the opposite direction, counting on a movement of 30-35 pips from the entry point. We can count on the euro to rise in the first half of the day. Important: Before buying, ensure the MACD indicator is above the zero mark and starting to rise from it.
Scenario No 2. I will also buy the euro today if the price at 1.0970 is tested twice consecutively when the MACD indicator is in the oversold area. This will limit the instrument's downward potential and lead to a reverse market upturn. We can expect growth to the opposite levels of 1.1002 and 1.1025.
Sell signals
Scenario No 1. I plan to sell the euro after reaching 1.0970, plotted by the red line on the chart. The target will be 1.0934, where I will 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 return today if the pair fails to consolidate near the intraday high. Important: 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 will also sell the euro today in case of two consecutive price tests of 1.1002 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 1.0970 and 1.0934.
What's on the chart:
Thin green line: the entry price at which you can buy the trading instrument.
Thick green line: the estimated price at which you can set Take Profit or manually close positions, as further growth above this level is unlikely.
Thin red line: the entry price at which you can sell the trading instrument.
Thick red line: an estimated price at which you can place Take Profit or manually close positions, as further decline below this level is unlikely.
MACD indicator: when entering the market, it is essential to be guided by overbought and oversold zones.
Important: Novice traders in the forex market must be cautious when deciding 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. You must set stop orders to avoid losing your entire deposit, especially if you don't use money management and trade in large volumes.
Remember, a clear trading plan, like the one I've outlined, is essential for successful trading. Making impulsive decisions based on the current market situation is a losing strategy for novice intraday traders.
