Analysis of Trades and Trading Tips for the Euro
The morning levels I identified were not tested due to extremely low market volatility. The lack of normal trading volume and a strong news background understandably affected traders' decisions, keeping the trade within a narrow sideways channel. It's clear that until the publication of the Federal Reserve meeting minutes, we will likely continue to see the same pattern, so there's no need to rush into market entries. Only a highly dovish set of minutes, with a clear consensus among Fed members on the need for an imminent rate cut, will trigger new euro buying and U.S. dollar selling. As for the intraday strategy, I plan to act based on the execution of scenarios No. 1 and No. 2.
Buy Signal
Scenario No. 1: Today, I plan to buy the euro upon reaching the price around 1.1135 (green line on the chart) with a target of rising to 1.1171. At 1.1171, I will exit the market and also sell the euro in the opposite direction, aiming for a movement of 30-35 pips from the entry point. A strong upward movement in the euro today is unlikely. However, buying to continue the upward trend is more appropriate than selling. Important! Before buying, ensure that the MACD indicator is above the zero line and just starting to rise from it.
Scenario No. 2: I also plan to buy the euro today in case of two consecutive tests of the 1.1110 price when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a market reversal upward. Growth to the opposite levels of 1.1135 and 1.1171 can be expected.
Sell Signal
Scenario No. 1: I will sell the euro after reaching the 1.1110 level (red line on the chart). The target will be the 1.1073 level, where I plan to exit the market and buy the euro immediately in the opposite direction, targeting a movement of 20-25 pips from the level. Pressure on the pair will return in case of a failed attempt to rise above the daily high. Important! Before selling, ensure that the MACD indicator is below the zero line and just starting to decline from it.
Scenario No. 2: I also plan to sell the euro today in case of two consecutive tests of the 1.1135 price when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. A decline to the opposite levels of 1.1110 and 1.1073 can be expected.
Key Elements on the Chart:
Thin green line – the entry price at which you can buy the trading instrument.Thick green line – the estimated price where you can set Take Profit or manually fix profits, 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 – the estimated price where you can set Take Profit or manually fix profits, as further decline below this level is unlikely.MACD Indicator – When entering the market, it is important to rely on overbought and oversold zones.Important: Beginner traders in the forex market need to make decisions about market entry very carefully. 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 set stop orders to minimize losses. Without stop orders, you can quickly lose your entire deposit, especially if you don't use proper money management and trade with large volumes.
And remember, a clear trading plan, like the one above, is essential for successful trading. Making spontaneous trading decisions based on the current market situation is inherently a losing strategy for an intraday trader.