Analysis of transactions in the EUR / USD pair
Euro tested 1.0776 when the MACD line was just starting to move above zero, which was a pretty good signal to buy. It resulted in a price increase of over 40 pips.
A sell-off from 1.0821 also turned out to be very profitable as euro slid down more than 50 pips after the price update. No other signals appeared for the rest of the day.
Euro rose on Thursday as risk appetite surged after the US CPI data for December showed a decline. Most likely, this bullish tilt in markets will continue today as upcoming Eurozone reports are not that important. There are also US reports in the afternoon, such as the consumer sentiment index from the University of Michigan and inflation expectations, which is likely to further weaken demand for the dollar. The import and export price index data will probably be ignored.
For long positions:
Buy euro when the quote reaches 1.0851 (green line on the chart) and take profit at the price of 1.0907. There is a chance for growth today as the US data that was released yesterday was quite good. But before buying, make sure that the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0816, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.0851 and 1.0907.
For short positions:
Sell euro when the quote reaches 1.0851 (red line on the chart) and take profit at the price of 1.0816. Pressure will return if the attempt to consolidate at weekly highs fails. 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 1.0851, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0816 and 1.0761.
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.