Analysis of transactions and tips for trading EUR/USD
The test of 1.0646 occurred during the drop of the MACD line from zero. This provoked a sell signal, which led to a price decrease of around 15 pips.
The decline in the consumer price index of France and Germany intensified pressure on euro, while the rise of inflation expectations in the US led to the strengthening of dollar at the end of last week. Today, attention should be paid to the data on the wholesale price index of Germany and industrial production in the eurozone. Weak indicators will likely lead to a new sell-off of euro, so look for entry points into the market further along the trend. And even if euro demonstrates a correction in the morning, it will not shift the balance of power, as the higher euro goes, the more attractive it will be for selling.
For long positions:
Buy when euro hits 1.0668 (green line on the chart) and take profit at the price of 1.0701. Growth could occur, but it will only be a small upward correction.
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 1.0646, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0668 and 1.0701.
For short positions:
Sell when euro reaches 1.0646 (red line on the chart) and take profit at the price of 1.0615. Pressure will increase in the case of unsuccessful consolidation 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 1.0668, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0646 and 1.0615.
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.