Analysis of transactions in the EUR / USD pair
EUR/USD tested 1.0182. At that time, the MACD line had just started to move below zero, which is a good signal to sell. Without a doubt, taking short positions was correct because the pair fell in price by about 60 pips. However, the target of 1.0130 was not reached, and after that no other signals appeared for the rest of the day.
Although the report on business activity in the Euro area disappointed traders, EUR/USD did not decline much because many already expected such low numbers. Buyers also took advantage of the prices, trying to get out to weekly highs, immediately after the release of similar data for the US.
Just ahead are reports on business environment, present situation and economic expectations in Germany, which will most likely put pressure on the pair because they are projected to show a decrease. In the afternoon, there is no data for the US, so the market should cool down, which may prompt a correction. Expect trading to continue in the side channel.
For long positions:
Buy euro when the quote reaches 1.0212 (green line on the chart) and take profit at the price of 1.0263. There is a chance for a rally today, but only after good reports on Germany.Take note that when buying, the MACD line should be above zero or is starting to rise from it. Euro can also be bought at 1.0182, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0212 and 1.0263.
For short positions:
Sell euro when the quote reaches 1.0182 (red line on the chart) and take profit at the price of 1.0130. Pressure will return if reports on Germany show weaker-than-expected numbers.Take 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 1.0212, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.0182 and 1.0130.
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 decision based on the current market situation is an inherently losing strategy for an intraday trader.