Analysis of transactions and tips for trading EUR/USD
The test of 1.0963 took place during the decline of the MACD line from zero. This provoked a sell signal, leading to a price decrease of around 30 pips.
A massive sell-off occurred in the pair due to the strong inflation data from the US. Additionally, the report may affect the decisions of the Fed regarding interest rates. Data on Italy's industrial production had no impact on the market.
Today there will be a report on France's consumer price index, followed by a speech from ECB Executive Board member Philip Lane. A hawkish tone will be a reason to buy euro in the short term.
For long positions:
Buy when euro hits 1.0986 (green line on the chart) and take profit at the price of 1.1015. Growth will occur, but it will be within a sideways channel, or after the release of US producer price data, which, like the overall inflation, might have increased.
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 1.0956, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0986 and 1.1015.
For short positions:
Sell when euro reaches 1.0956 (red line on the chart) and take profit at the price of 1.0925. Pressure will return in the case of unsuccessful bullish activity near the daily high.
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 1.0986, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0956 and 1.0925.
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.