Analysis of Trades and Trading Tips for the Euro
The test of the 1.0815 price level occurred when the MACD indicator was starting to move down from the zero mark, which, along with strong U.S. data and consumer sentiment growth, confirmed a good entry point for selling the euro. As a result, the pair dropped by 20 pips. No economic data is expected from the Eurozone today, leaving buyers with few opportunities, unlike last Friday when German data provided support. European Central Bank Vice President Luis de Guindos' speech will be today's key event. A dovish tone from the ECB official could apply pressure on the pair, potentially leading it toward the monthly low. I will primarily focus on implementing scenarios #1 and #2 for today's intraday strategy.
Buy Signal
Scenario #1: Today, consider buying the euro if it reaches around 1.0805 (green line on the chart) with a target of 1.0833. At 1.0833, I plan to exit the market and sell the euro in the opposite direction, aiming for a 30-35-pip movement from the entry point. Growth in the euro today is unlikely in the morning session. Important! Before buying, ensure the MACD indicator is above the zero line and starting to rise.
Scenario #2: Another buying opportunity arises if there are two consecutive tests of the 1.0781 level when the MACD is in the oversold zone. This will likely limit the pair's downward potential and lead to a market reversal upwards. A rise toward 1.0805 and 1.0833 can be expected.
Sell Signal
Scenario #1: I plan to sell the euro after it reaches the 1.0781 level (red line on the chart). The target will be 1.0751, where I will exit and immediately buy in the opposite direction (anticipating a 20-25 pip reversal from this level). Pressure on the pair will return if it fails to rise beyond the daily high. Important! Before selling, make sure the MACD is below the zero line and just starting to fall from it.
Scenario #2: I also plan to sell the euro if there are two consecutive tests of the 1.0805 level while the MACD is in the overbought zone. This will limit the pair's upward potential and lead to a reversal downward, with expected declines toward 1.0781 and 1.0751.
Chart Indicators:
Thin Green Line – Entry price to buy the instrument.
Thick Green Line – Suggested price level for setting Take Profit or manually taking profits, as further growth beyond this level is unlikely.
Thin Red Line – Entry price to sell the instrument.
Thick Red Line – Suggested price level for setting Take Profit or manually taking profits, as further decline beyond this level is unlikely.
MACD Indicator – When entering the market, consider overbought and oversold zones.
Important: Novice traders should exercise caution when entering the market. Before the release of significant fundamental reports, it is best to stay out of the market to avoid sudden price swings. If you choose to trade during news releases, always set stop orders to minimize losses. You may quickly lose your entire deposit without stop orders, especially if trading large volumes without proper money management.
Remember, successful trading requires a clear plan, like the above example. Spontaneous trading decisions based on current market conditions are inherently a losing strategy for an intraday trader.
