The test of 1.1069, coinciding with the drop of the MACD line from zero, prompted a sell signal that led to a price decrease of over 30 pips.
Weak data from Germany played a key role in euro's decline this morning, but the situation may ease once the US releases its report on consumer confidence this afternoon. If the index exceeds expectations, EUR/USD will continue its decline, leading to a return to the psychological level of 1.1000. If the number disappoints, the pair will rally.
The reports on the House Price Index and the Richmond Fed Manufacturing Index will not have a significant impact on the market.
For long positions:
Buy when euro hits 1.1069 (green line on the chart) and take profit at the price of 1.1126. Growth will occur only amid weak data from the US. However, when buying, ensure that the MACD line lies above zero or rises from it.
Euro can also be bought after two consecutive price tests of 1.1040, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1069 and 1.1126.
For short positions:
Sell when euro reaches 1.1040 (red line on the chart) and take profit at the price of 1.1000,. Pressure may increase in the case of good indicators from the US. However, when selling, 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 1.1069, but the MACD line should be in the overbought area as only by that will the market reverse to 1.1040 and 1.1000.
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.