Analysis of transactions and tips for trading EUR/USD
The test of 1.0848 happened when the MACD line was quite far from zero, so the downward potential was limited. There was another test in the afternoon, but it was at 1.0826 and the MACD line was just beginning to move down from zero. This was a good reason to sell, resulting in a price decrease of about 10 pips.
Euro fell on Wednesday morning as CPI in the euro area matched the projections. Then, in the afternoon, mixed data on the real estate market came from the US, which allowed traders to offset all losses.
The economic calendar in the Euro area is empty today, so markets will put all attention to the speeches of ECB members. Comments on further interest rate hikes will invigorate traders, leading to a rise in EUR/USD.
For long positions:
Buy euro when the level of 1.0849 (green line on the chart) is reached and then take profit at the price of 1.0896. Growth will be seen, but it will only be a correction after a long decline/ Nevertheless, before buying, traders should make sure that the MACD line is above zero or is starting to rise from it. Euro can also be bought after two consecutive price tests of 1.0825, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0849 and 1.0896.
For short positions:
Sell euro when the level of 1.0825 (red line on the chart) is reached and then take profit at the price of 1.0784. Pressure will return if the ECB is no longer hawkish with regards to monetary policy. However, when selling, traders should make sure that the MACD line is below zero or is starting to move down from it. Euro can also be sold after two consecutive price tests of 1.0849, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0825 and 1.0784.
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.