Analysis of transactions and trading tips on EUR/USD
The test of 1.0782 earlier in the day coincided with the sharp decline of the MACD line from zero, limiting the downward potential of the pair. But shortly after, another test occurred, and this time the MACD line lies in the oversold area, prompting a buy signal. This led to a price increase of about 20 pips.
Although lending data in the eurozone did not lead to significant market changes, it managed to limit the pair's downward potential. Volatility may also be even lower in the afternoon due to the completely empty macroeconomic calendar in the US.
For long positions:
Buy when euro hits 1.0824 (green line on the chart) and take profit at the price of 1.0849. Growth will occur after a consolidation above local highs. 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 1.0805, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0824 and 1.0849.
For short positions:
Sell when euro reaches 1.0805 (red line on the chart) and take profit at the price of 1.0782. Pressure may increase at any time within the bear market. 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 1.0824, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0805 and 1.0782.
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.