Inflation in the Euro area continues to decline. In fact, the March indicator has further divided the camp between those who bet on a rate hike of 0.25% and those who still believe in 0.5%. In any case, it is clear that the decline in price pressure is adversely affecting euro, as the prospects for further aggressive rate hikes are now in question.
Earlier, there was a test of 1.0971, during which the MACD line had just started to climb above zero. This was a good buy signal. However, losses were recorded instead as an upward movement did not occur.
The economic calendar is empty today except for the Fed Beige Book, which is unlikely to have a significant impact on the market. Do not expect strong movements in any direction.
For long positions:
Buy euro when the price hits 1.0945 (green line on the chart) and then take-profit when the quote reaches the level of 1.0974. Having no pressure at daily lows will provoke the closing of short positions and an upward surge. However, before buying, make sure that the MACD line is above zero and is starting to rise from it.
Euro can also be bought at 1.0922, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0945 and 1.0974.
For short positions:
Sell euro when the price reaches 1.0922 (red line on the chart) and take-profit at the level of 1.0892. If pressure persists on the pair, expect buyers near the weekly lows. However, before selling, make sure that the MACD line is below zero and is starting to drop down from it.
Euro can also be sold at 1.0945, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0922 and 1.0892.
What's on the chart:
Thin green line - entry price at which you can buy EUR/USD
Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.
Thin red line - entry price at which you can sell EUR/USD
Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.
MACD line- it is important to be guided by overbought and oversold areas when entering the market
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.