Analysis of transactions and tips for trading EUR/USD
The test of 1.0814 happened when the MACD line was just starting to move downward from zero, which was a signal to sell. Accordingly, the pair fell by about 17 pips.
Euro has a chance to rise today if the upcoming data on business activity in both manufacturing and service sector of Germany, France, and Italy exceed expectations. This is because a strong service sector will help the European economy avoid a recession, while good situation around manufacturing is likely to lead to a revision of the composite PMI index.
For long positions:
Buy euro when the level of 1.0822 (green line on the chart) is reached and then take profit at the price of 1.0860. Growth will be seen after positive news from the eurozone. However, 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 1.0800, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0822 and 1.0860.
For short positions:
Sell euro when the level of 1.0800 (red line on the chart) is reached and then take profit at the price of 1.0764. Pressure will return if there is no bullish activity at the daily highs. 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 1.0822, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0800 and 1.0764.
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.