Analysis of transactions in the EUR / USD pair
The test of 0.97168 happened when the MACD line went down far below zero, which should have limited the downside potential of the pair. However, the quote fell by as much as 30 pips. No other signals appeared for the rest of the day.
EUR/USD fell on Monday as the data on investor confidence in the Euro area and speech from Bundesbank and ECB representatives did not help euro rise. As for today, there are no statistics scheduled to be published, except for the report on business optimism from the NFIB. However, it will not affect the market as it is of little interest. There will also be speeches from FOMC members Patrick Harker and Loretta Mester, which is likely to be identical to what is heard from other Fed officials over the past week.
For long positions:
Buy euro when the quote reaches 0.9725 (green line on the chart) and take profit at the price of 0.9788. Although there is little chance for price growth, traders could still provoke a slight upward correction.
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 0.9679, but the MACD line should be in the oversold area as only by that will the market reverse to 0.9725 and 0.9788.
For short positions:
Sell euro when the quote reaches 0.9679 (red line on the chart) and take profit at the price of 0.9636. Pressure will return if the attempt for price growth fails.
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 0.9725, but the MACD line should be in the overbought area as only by that will the market reverse to 0.9679 and 0.9636.
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.