Analysis of trades and trading tips for the euro
Testing the 1.0860 level occurred when the MACD indicator moved significantly above the zero mark, which limited the pair's upward potential, especially after mixed statistics from Germany and the IFO institute indices. For this reason, I did not buy. The second test of 1.0860, with the MACD in the overbought area, led to the implementation of sell scenario #2, which is still relevant at the time of writing. There are no US statistics or Federal Reserve speeches in the second half of the day. Therefore, I expect trading within a channel with a slight buyer advantage. For the intraday strategy, I plan to rely on implementing scenarios #1 and #2.
Buy Signal
Scenario #1: Today, I plan to buy the euro at the price level of around 1.0877 (green line on the chart), with a target of rising to 1.0920. At 1.0920, I will exit the market and sell the euro in the opposite direction, aiming for a move of 30-35 pips from the entry point. Today's upward movement of the euro can be expected to continue. Important! Before buying, ensure that the MACD indicator is above the zero mark and starting to rise.
Scenario #2: I also plan to buy the euro today if there are two consecutive tests of the 1.0853 price when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. Growth can be expected to opposite levels of 1.0877 and 1.0920.
Sell Signal
Scenario #1: I will sell the euro after reaching the 1.0853 level (red line). The target will be 1.0815, where I plan to exit the market and immediately buy the euro in the opposite direction (aiming for a move of 20-25 pips from the level). Pressure on the pair will return if buyer activity around the daily high is unsuccessful. Important! Before selling, ensure that the MACD indicator is below the zero mark and starting to decline.
Scenario #2: I also plan to sell the euro today if two consecutive tests of the 1.0877 price are tested when the MACD indicator is overbought. This will limit the pair's upward potential and lead to a market reversal downward. A decline can be expected to the opposite levels of 1.0853 and 1.0815.
Chart Key:
Thin Green Line: Entry price for buying the trading instrument.Thick Green Line: Expected price where Take Profit can be set or profits can be fixed independently, as further growth above this level is unlikely.Thin Red Line: Entry price for selling the trading instrument.Thick Red Line: Expected price where Take Profit can be set, or profits can be fixed independently, as further decline below this level is unlikely.MACD Indicator: When entering the market, following the overbought and oversold zones is important.Important Notes for Beginner Traders:
Beginner forex traders should be very cautious when making market entry decisions. It is best to stay out of the market before important fundamental reports are released to avoid sudden price fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. Without stop orders, you can quickly lose your entire deposit, especially if you do not use money management and trade large volumes.
Remember, successful trading requires a clear plan like the one presented above. Making spontaneous trading decisions based on the current market situation is initially a losing strategy for an intraday trader.