The test of 1.1206, coinciding with the drop of the MACD line from zero, prompted a sell signal that continues even now. Market players obviously anticipate a further decline and correction in the pair.
The empty macroeconomic calendar in the eurozone did not favor anyone. Most likely, low trading volume will end as soon as fresh US data comes out.
Seeing a decline in the number of initial jobless claims and an increase in the Philadelphia Fed's manufacturing index will boost selling pressure, leading to a further drop in EUR/USD. Data on home sales in the secondary market will also play a significant role in determining the direction of the pair.
For long positions:
Buy when euro hits 1.1219 (green line on the chart) and take profit at the price of 1.1256. Growth will only be possible in the event of very poor labor market data. However, when buying, traders should make sure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.1201, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1219 and 1.1256.
For short positions:
Sell when euro reaches 1.1201 (red line on the chart) and take profit at the price of 1.1166. Pressure will increase in the case of good real estate market indicators in the US. However, when selling, traders should make sure that the MACD line lies below zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.1219, but the MACD line should be in the overbought area as only by that will the market reverse to 1.1201 and 1.1166.
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.