Analysis of transactions in the EUR / USD pair
A signal to sell emerged after EUR/USD hit 1.1200. However, there was no decrease because the MACD line being in the oversold area limited the downside potential of the pair. The same thing happened some time later, but this time the signal was to buy. The key level was the same, however, there was no decrease even though the indicator is already moving out from the negative zone. No other signal appeared for the rest of the day.
GDP data from France and Germany, as well as the report on consumer spending and inflation in France, did not affect the market because it meant nothing in light of what is happening in the geopolitical arena. But the report on consumer confidence and the speech of ECB President Christine Lagarde prompted a slight rise in EUR/USD.
Several speeches are scheduled for today, but the highlight will be the negotiations over the tension in Ukraine. And in the afternoon, the US will release data on the foreign trade balance and wholesale sales, followed by the Chicago PMI. It is best to bet on the rise of dollar because nothing good is expected on the market in the near future.
For long positions:
Buy euro when the quote reaches 1.1188 (green line on the chart) and take profit at the price of 1.1271 (thicker green line on the chart). However, there is little chance that a rally will be seen today because tension is ongoing in Ukraine. In any case, before buying, make sure that the MACD line is above zero or is starting to rise from it before taking long positions. It is also possible to buy at 1.1140, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1188 and 1.1271.
For short positions:
Sell euro when the quote reaches 1.1140 (red line on the chart) and take profit at the price of 1.1065. Pressure will return if tension in Ukraine escalates. But before selling, make sure that the MACD line is below zero, or is starting to move down from it. Euro can also be sold at 1.1188, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.1140 and 1.1065.
What's on the chart:
The thin green line is the key level at which you can place long positions in the EUR/USD pair.
The thick green line is the target price, since the quote is unlikely to move above this level.
The thin red line is the level at which you can place short positions in the EUR/USD pair.
The thick red line is the target price, since the quote is unlikely to move below this level.
MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.
Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.
And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.