Analysis of Trades and Trading Tips for the Euro
The levels I indicated were not tested in the first half of the day. Despite the relatively decent statistics on the less pronounced decline in manufacturing activity in the Eurozone, the euro hardly reacted. As a result, I did not identify any entry points. It is likely that volatility will decrease even further in the afternoon, given the lack of U.S. data, which will further reduce trading volume and impact the direction of the pair. On the other hand, buyers might seize the opportunity, as they have not been very active recently, probably waiting for more favorable prices. Regarding the intraday strategy, I plan to act based on Scenarios #1 and #2.
Buy Signal
Scenario #1: I plan to buy the euro today if the price reaches around 1.1080 (green line on the chart), aiming for a rise to 1.1136. At 1.1136, I will exit the market and also sell the euro in the opposite direction, expecting a move of 30-35 points from the entry point. Strong upward movement in the euro today seems unlikely. Important: Before buying, ensure that the MACD indicator is above the zero line and just starting to rise from it.
Scenario #2: I also plan to buy the euro today if there are two consecutive tests of the price at 1.1055, while the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. We can expect a rise to the levels of 1.1080 and 1.1136.
Sell Signal
Scenario #1: I will sell the euro after the price reaches 1.1055 (red line on the chart). The target will be 1.0995, where I plan to exit the market and immediately buy the euro in the opposite direction, expecting a move of 20-25 points in the opposite direction from this level. Pressure on the pair will return if there are no buyers near the daily high. Important: Before selling, ensure that the MACD indicator is below the zero line and just starting to decline from it.
Scenario #2: I also plan to sell the euro today if there are two consecutive tests of the price at 1.1080, while the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward market reversal. We can expect a decline to the levels of 1.1055 and 1.0995.
Chart Details:
Thin Green Line – Entry price for buying the trading instrument.Thick Green Line – Estimated price for setting Take Profit or taking profit manually, as further growth above this level is unlikely.Thin Red Line – Entry price for selling the trading instrument.Thick Red Line – Estimated price for setting Take Profit or taking profit manually, as further decline below this level is unlikely.MACD Indicator – When entering the market, it is important to consider the overbought and oversold zones.Important: Beginner Forex traders need to be very cautious when making market entry decisions. Before major fundamental reports are released, it is best to stay out of the market to avoid 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 do not use proper money management and trade large volumes.
Remember that successful trading requires a clear trading plan, such as the one presented above. Spontaneous trading decisions based on the current market situation are inherently a losing strategy for intraday traders.