Analysis of transactions in the EUR / USD pair
Euro tested 0.9816 at the moment when the MACD line was just starting to move below zero mark, which was a good signal to sell. This resulted in a price decrease of around 50 pips and a test of 0.9771. The latter, however, did not lead to an upward correction, and no other signals appeared for the rest of the day.
Euro fell on Friday as data on business activity in the EU manufacturing and services sector, as well as composite index, diverged in a much more negative direction from forecasts. Then, US report on the same indices limited the downside potential for a while, but the speech of Fed chairman once again brought fear to the market, reducing the risk appetite.
Nothing good can be expected today either as upcoming data on Germany's business environment, present situation and economic expectations are likely to be negative. Also ahead are speeches of ECB and Fed representatives, which will drive the market.
For long positions:
Buy euro when the quote reaches 0.9660 (green line on the chart) and take profit at the price of 0.9706. However, growth is unlikely especially if the Euro area reports weak economic statistics.
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 0.9626, but the MACD line should be in the oversold area as only by that will the market reverse to 0.9660 and 0.9706.
For short positions:
Sell euro when the quote reaches 0.9626 (red line on the chart) and take profit at the price of 0.9585. Pressure may return after the speeches of ECB and Fed representatives.
Take note that when selling, the MACD line should be below zero or is starting to move down from it. Euro can be sold at 0.9660, but the MACD line should be in the overbought area as only by that will the market reverse to 0.9626 and 0.9585.
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.