Analysis of transactions in the EUR / USD pair
A signal to buy emerged after EUR/USD hit 1.0824. Coincidentally, the MACD line was starting to move above zero, so the pair rose by 40 pips. No other signal appeared for the rest of the day.
EUR/USD rose on Wednesday, thanks to the stronger-than-expected PPI data from Germany. Meanwhile, the report on EU's industrial production this February did not affect the market, as did the data on foreign trade balance. The speech of ECB board member Joachim Nagel was also ignored by traders.
In the afternoon, US statistics did not lead to a surge in volatility, keeping the pair within the sideways channel. Statements made by FOMC members Mary Daly and Charles Evans were also of little interest as the focus of markets shifted to today, where more important events are scheduled.
Today appears to be another busy day because in the morning, EU's CPI for March will be released, which may help euro rally. However, given the current situation, it is better to take short positions as the Fed is likely to take more aggressive actions on monetary policy.
For long positions:
Buy euro when the quote reaches 1.0863 (green line on the chart) and take profit at the price of 1.0901 (thicker green line on the chart). However, a further increase will occur only if there are strong statistics in the Eurozone and aggressive statements from the ECB.
In any case, when buying, make sure that the MACD line is above zero or is starting to rise from it. It is also possible to buy at 1.0836, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0863 and 1.0901.
For short positions:
Sell euro when the quote reaches 1.0836 (red line on the chart) and take profit at the price of 1.0807. Pressure is likely to return because risk appetite is seriously deteriorating. Hawkish statements by the Fed will also pull EUR/USD down. 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 1.0863, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0836 and 1.0807.
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.