Analysis of Trades and Tips for Trading the EuroA test of the 1.0511 level coincided with the MACD indicator beginning to move downward from the zero level, confirming a good entry point for selling the euro. As a result, the pair fell by more than 25 points, nearly reaching the target level of 1.0484.
The Eurozone statistics were relatively normal. In the second half of the day, the release of PMI indices is expected to significantly influence currency market dynamics, drawing the focus of investors and traders. The ISM Services PMI is a key indicator reflecting the state of the economy. A sharp decline in this index might signal a slowdown in growth within the services sector, which is critically important for the US economy, where services account for a significant share.
Additionally, the ADP report on US private-sector employment is highly significant. Weak results could amplify existing uncertainty in the labor market. If the actual figures fall short of forecasts, this could lead to a sharp decline in the dollar, which has recently been relatively strong. Given the potential deterioration in economic indicators, the dollar might experience heightened volatility.
For today's intraday strategy, I plan to prioritize executing Scenario 1 and Scenario 2.
Scenario 1: Buying the euro is possible when the price reaches the 1.0519 level (green line on the chart), targeting a rise to 1.0550. At 1.0550, I plan to exit the market and sell the euro for a 30–35 point pullback. A significant rise in the euro today is likely only after weak US labor market data.Important! Before buying, ensure that the MACD indicator is above the zero level and just beginning to rise.
Scenario 2: Another buying opportunity may arise after two consecutive tests of the 1.0497 level, with the MACD indicator in the oversold zone. This will limit the pair's downward potential, potentially triggering an upward reversal. Growth is expected toward the levels of 1.0519 and 1.0550.
Sell SignalScenario 1: Selling the euro is advisable after reaching the 1.0497 level (red line on the chart). The target will be 1.0466, where I plan to exit and buy in the opposite direction for a 20–25 point pullback. If the data is strong, the pair is likely to remain under pressure.Important! Before selling, ensure that the MACD indicator is below the zero level and just beginning to decline.
Scenario 2: Another selling opportunity may arise after two consecutive tests of the 1.0519 level, with the MACD indicator in the overbought zone. This will limit the pair's upward potential and likely trigger a downward reversal. Declines are expected toward the levels of 1.0497 and 1.0466.