Analysis of transactions in the EUR / USD pair
Although an upward movement is expected in EUR/USD after the ECB meeting, a decline is still possible. After all, the European Central Bank is about to announce the end of its large-scale bond purchases, paving the way for the first interest rate hike in more than a decade. The plan will fit in with the schedule presented by ECB chief Christine Lagarde, who wants to end low borrowing costs in the third quarter in anticipation of a more aggressive monetary policy.
For long positions:
Buy euro when the quote reaches 1.0738 (green line on the chart) and take profit at the price of 1.0789 (thicker green line on the chart). A rally may be seen today, but only after the meeting of the ECB. Nevertheless, note that when buying, the MACD line should be above zero or is starting to rise from it. It is also possible to buy at 1.0699, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0738 and 1.0789.
For short positions:
Sell euro when the quote reaches 1.0699 (red line on the chart) and take profit at the price of 1.0655. Pressure will return, but only in the morning. Nevertheless, note that when selling, the MACD line should be below zero or is starting to move down from it. Euro can also be sold at 1.0738, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.0699 and 1.0655.
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.