Analysis of transactions in the EUR / USD pair
The test of 0.9800 occurred at the time when the MACD line was just starting to move above zero, which was a good reason to buy. It resulted in a price increase of over 30 pips. As for sales at 0.9837, they sent euro down another 30 pips. No other signals appeared for the rest of the day.
Although Germany's PPI exceeded expectations, it did not lead to serious market changes as the sharp drop in US jobless claims fueled demand for dollar. Clearly, the data heightened fears of further over-aggressiveness on the part of the Federal Reserve. The speeches made by FOMC members did not affect the market much.
For today, there are no statistics that would allow bulls to grab onto the market, so expect pressure to continue, which could lead to the exit of the pair from the lower boundary of the side channel. In the afternoon, data on the Eurozone's consumer confidence indicator will be released, but it is unlikely to be positive, which will be another reason to buy US dollar. There is also nothing from the US, while the speech of FOMC member John Williams is unlikely to change the market.
For long positions:
Buy euro when the quote reaches 0.9800 (green line on the chart) and take profit at the price of 0.9837. Growth will occur after the breakdown of 0.9800.
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 0.9765, but the MACD line should be in the oversold area as only by that will the market reverse to 0.9800 and 0.9837.
For short positions:
Sell euro when the quote reaches 0.9765 (red line on the chart) and take profit at the price of 0.9725. Pressure will intensify if the attempt of traders to push prices up 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 0.9800, but the MACD line should be in the overbought area as only by that will the market reverse to 0.9765 and 0.9725.
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.