Analysis of Trades and Trading Tips for the Euro
There were no tests of the levels I indicated in the first half of the day. Low volatility, due to a lack of important news and a similarly low-volume Friday, prevented the pair from reaching my targets. As a result, no trades were executed. In the second half of the day, besides the Leading Indicators Index data, there will also be speeches from FOMC members Lorie K. Logan and Neel Kashkari, who often draw traders' attention with their statements. Hopefully, this will be the case this time. If the Fed representatives don't offer any new insights regarding monetary policy, the pair will likely remain within its current range, maintaining the sideways channel. Regarding the intraday strategy, I will focus more on Scenario #2, as it aligns better with the current market conditions.
Buy Signal
Scenario #1: Today, buying the euro is possible if the price reaches the area around 1.0861 (green line on the chart), targeting a rise to 1.0895. At 1.0895, I plan to exit the market and then initiate a sell position, aiming for a movement of 30-35 points from the entry point. A strong rise in the euro during the second half of the day is unlikely. Important: Before buying, confirm that the MACD indicator is above the zero line and just beginning its upward movement.
Scenario #2: I also plan to buy the euro today if the price tests the 1.0844 level twice consecutively while the MACD indicator is in the oversold area. This will limit further declines in the pair and could prompt an upward reversal. Growth towards the resistance levels of 1.0861 and 1.0895 can be expected.
Sell Signal
Scenario #1: I plan to sell the euro if the price reaches the 1.0844 level (red line on the chart). The target will be 1.0811, where I plan to exit the market and then buy, expecting a movement of 20-25 points upwards from this level. The pair could face renewed selling pressure if strong US data is released today. Important: Before selling, confirm that the MACD indicator is below the zero line and just beginning its downward movement.
Scenario #2: I also plan to sell the euro today if the price tests the 1.0861 level twice consecutively while the MACD indicator is in the overbought area. This will limit the pair's upward potential and could lead to a downward reversal. A decline towards the support levels of 1.0844 and 1.0811 can be expected.
What's on the chart:
- Thin green line – the entry price where you can buy the trading instrument.
- Thick green line – the estimated price for setting a Take Profit or manually locking in profits, as further growth above this level is unlikely.
- Thin red line – the entry price where you can sell the trading instrument.
- Thick red line – the estimated price for setting a Take Profit or manually locking in profits, as further decline below this level is unlikely.
- MACD Indicator: When entering the market, it's important to consider overbought and oversold zones.
Important: Beginner traders in the Forex market should make entry decisions with great caution. Before the release of important fundamental reports, it is best to stay out of the market to avoid sharp price swings. If you choose to trade during news releases, always place stop-loss orders to minimize losses. Without setting stop-losses, you can quickly lose your entire deposit, especially if you do not use money management and trade large volumes.
Remember that for successful trading, it is essential to have a clear trading plan, like the one I've outlined above. Making spontaneous trading decisions based on the current market situation is generally a losing strategy for an intraday trader.
