Analysis of transactions in the EUR / USD pair
The test of 1.0549 occurred when the MACD line was far below zero, so the downside potential was limited. Sometime later, another test took place, but this time euro fell by 30 pips because the MACD line had started to move under zero again. No other signals appeared for the rest of the day.
EUR/USD dipped on Friday after it was revealed that US PPI rose much more in November than economists expected. This bolstered confidence that the Fed will continue to act aggressively next year.
As for today, there is nothing that could change the market direction because ahead is the long-awaited US inflation statistics. The speech of ECB Board member Kerstin Jochnick and US federal budget execution report are unlikely to have any impact, so expect volatility to be low, as is trading volume.
For long positions:
Buy euro when the quote reaches 1.0540 (green line on the chart) and take profit at the price of 1.0585. Growth will occur only when the daily highs are broken. 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 1.0508; however, the MACD line should be in the oversold area as only by that will the market reverse to 1.0540 and 1.0585.
For short positions:
Sell euro when the quote reaches 1.0508 (red line on the chart) and take profit at the price of 1.0461. Pressure may increase before tomorrow's statistics, 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 1.0540; however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0508 and 1.0461.
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.