Analysis of transactions and tips for trading EUR/USD
The test of 1.0783 took place at a time when the MACD line moved downward from zero, provoking a sell signal. This resulted in a price decrease of around 15 pips. Pressure eased after, and trading moved within the channel it had been all day.
ZEW data on Germany's business sentiment, present situation, and economic expectations came out, and they led to a rise in EUR/USD during the European session. The same could happen today if the report on industrial production does not disappoint. However, later in the day, everything may change depending on the outcome of the Fed meeting.
For long positions:
Buy when euro hits 1.0793 (green line on the chart) and take profit at the price of 1.0826. Growth may occur, but it will not be very strong due to the important Fed meeting ahead, which could change everything.
When buying, make sure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0771, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0793 and 1.0826.
For short positions:
Sell when euro reaches 1.0771 (red line on the chart) and take profit at the price of 1.0740. Pressure will return in the case of an unsuccessful consolidation around the daily high and weak data for the eurozone.
When selling, make sure that the MACD line lies under zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0793, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0771 and 1.0740.
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.