Analysis of transactions in the EUR / USD pair
The test of 1.0499 occurred when the MACD line was far below zero, so the downside potential was limited. Sometime later, another test took place, but euro still did not fall even though the MACD line had just started to move under zero again.
1.0530 was tested in the afternoon, when the MACD line was also far away from zero, limiting the upside potential of the pair. No other signals appeared for the rest of the day.
Christine Lagarde's speech did not affect the market, but talks that the ECB will continue to raise rates next year sent euro higher. The weekly data on US jobless claims also pushed the currency up as the figures matched the forecasts.
There is nothing to report this morning apart from the speech of ECB representatives. However, it can be ignored as it is not so important to the market. In the afternoon, there is a report on US PPI for November, which, if shows an increase, will lead to a stronger dollar and a decline in EUR/USD. The consumer sentiment data from the University of Michigan is likely to be ignored.
For long positions:
Buy euro when the quote reaches 1.0588 (green line on the chart) and take profit at the price of 1.0641. Growth is likely to occur as traders are attempting to update the monthly highs. But remember that when buying, the MACD line should be above zero or is starting to rise from it.
Euro can also be bought at 1.0549; however, the MACD line should be in the oversold area as only by that will the market reverse to 1.0588 and 1.0641.
For short positions:
Sell euro when the quote reaches 1.0549 (red line on the chart) and take profit at the price of 1.0500. Pressure will return if there is no demand at the December highs. But 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 1.0588; however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0549 and 1.0500.
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.