The price test of 1.0775 occurred at a time when the MACD indicator was just starting to move down from the zero mark, which confirmed the entry point to sell the euro. As a result, the EUR/USD pair fell by about 7 pips, after which demand returned, which led to profit-taking. A similar entry point had pushed the pair to move by 12 pips. Friday's reports on Italy's industrial production and the European Central Bank's minutes hardly had any impact on the market, and the EUR/USD pair continued to trade within a sideways channel during the European session. Weak US reports led to a spike in volatility, and traders could use the aforementioned signals to enter the market. Today, there is nothing else apart from the European Commission's economic forecast and the Eurogroup meeting, so I expect the same low trading volume and low volatility. As for the intraday strategy, I will rely more on the implementation of scenarios No. 2.
Scenario No 1. Today, you can buy the euro when the price reaches 1.0785 plotted by the green line on the chart, aiming for growth to the level of 1.0816. At the level of 1.0816, I plan to exit the market and also sell the euro in the opposite direction, counting on a movement of 30-35 pips from the entry point. You can count on the euro to rise today within the framework of forming an upward trend, but no more than that. Before buying, make sure that the MACD indicator is above the zero mark and is just starting to rise from it.
Scenario No 2. I am also going to buy the euro today in case of two consecutive tests of the price of 1.0765 at the time when the MACD indicator is in the oversold area. This will limit the downward potential of the instrument and lead to an upward reversal of the market. We can expect growth to the opposite levels of 1.0785 and 1.0816.
Sell signalsScenario No 1. I plan to sell the euro after EUR/USD reaches the level of 1.0765 plotted by the red line on the chart. The target will be the level of 1.0739, where I am going to exit the market and buy immediately in the opposite direction (expecting a movement of 20-25 pips in the upward direction from the level). Pressure on EUR/USD will increase if it fails to consolidate near the daily high. Before selling, make sure that the MACD indicator is below the zero mark and is just starting to decline from it.
Scenario No 2. I am also going to sell the euro today in case of two consecutive price tests of 1.0785 at the time when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward reversal of the market. We can expect a decline to the opposite level of 1.0765 and 1.0739.
The thin green line is the entry price at which you can buy the trading instrument.
The thick green line is the price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.
The thin red line is the entry price at which you can sell the trading instrument.
The thick red line is the 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 in the cryptocurrency market need to be very cautious when making decisions to enter the market. It is best to stay out of the market before important fundamental reports are released to avoid getting caught in sharp price fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you don't use money management and trade with large volumes.
Remember, for successful trading, it is necessary to have a clear trading plan, similar to the one I presented above. Spontaneously making trading decisions based on the current market situation is inherently a losing strategy for an intraday trader.