Analysis of trades and tips on EUR/USD
The price test of 1.1051 occurred when the MACD indicator started moving upward from the zero mark, confirming it as a good entry point for buying the euro. As a result, the pair rose over 30 pips towards the target level of 1.1086. I did not sell there on the rebound as it was already the end of the day, and it was hardly possible to count on strong market volatility. Today, we expect interesting Eurozone data, which will influence the determination of the European Central Bank's monetary policy. Specifically, we're talking about the Eurozone Consumer Price Index and core prices, which are particularly important for the central bank. In the event of a decline in consumer prices, the euro exchange rate may also decline in the EUR/USD pair. If inflation coincides with economists' expectations, EUR/USD will likely retain its upward potential. For the intraday strategy, I will rely more on scenarios No. 1 and 2.
Buy signals
Scenario No 1. Today, you can buy the euro when the price reaches 1.1095, plotted by the green line on the chart, with the goal of rising to 1.1139. At 1.1139, I plan to exit the market and sell the euro in the opposite direction, counting on a movement of 30-35 pips from the entry point. Counting on the euro to rise today in the first half of the day will turn out to be a continuation of the trend. Important: Before buying, ensure the MACD indicator is above the zero mark and starting to rise from it.
Scenario No 2. I am also going to buy the euro today in case of two consecutive price tests of 1.1069 when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a reverse market upturn. We can expect growth to the opposite levels of 1.1095 and 1.1139.
Sell signals
Scenario No 1. I plan to sell the euro after reaching the level of 1.1069, plotted by the red line on the chart. The target will be the level of 1.1025, where I will exit the market and buy immediately in the opposite direction (expecting a movement of 20-25 pips in the opposite direction from the level). Pressure on EUR/USD will return today if the pair fails to consolidate near the daily high and news about a sharp slowdown in inflation growth. Important: 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 1.1095 when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a reverse market downturn. One can expect a decline to the opposite levels of 1.1069 and 1.1025.
What's on the chart:
Thin green line: the entry price at which you can buy the trading instrument.
Thick green line: the estimated price at which you can set Take Profit or manually close positions, as further growth above this level is unlikely.
Thin red line: the entry price at which you can sell the trading instrument.
Thick red line: an estimated price at which you can place Take Profit or manually close positions, as further decline below this level is unlikely.
MACD indicator: when entering the market, it is essential to be guided by overbought and oversold zones.
Important: Novice traders in the forex market must be cautious when deciding 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. You must set stop orders to avoid losing your entire deposit, especially if you don't use money management and trade in large volumes.
Remember, a clear trading plan, like the one I've outlined, is essential for successful trading. Making impulsive decisions based on the current market situation is a losing strategy for novice intraday traders.