Analysis of transactions and tips for trading EUR/USD

The test of 1.0665 occurred when the MACD line was just starting to move downwards, which was a good signal to sell. There was no strong price decrease during the first test, but on the second the pair managed to fall down by 20 pips. No other entry points were achieved for the rest of the day.

PMI data for the eurozone was ignored by markets even though the figures were better than expected. They only reacted with similar reports from the US, prompting a rise in USD.

Key reports for today are Germany's data on inflation, as well as reports on business conditions, present situation and economic expectations from the IFO. Good numbers will allow EUR to rise and get out of the pressure from sellers. In the afternoon, there is only the Fed's minutes, which is unlikely to have a strong impact on markets as much has already changed since the meeting.

For long positions:

Buy euro when the quote reaches 1.0681 (green line on the chart) and take profit at the price of 1.0722. Growth will occur if economic data from Germany exceeds expectations. However, make sure that when buying, the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0650, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0681 and 1.0722.

For short positions:

Sell euro when the quote reaches 1.0650 (red line on the chart) and take profit at the price of 1.0616. Pressure may return if there is no reaction to IFO data. However, make sure that when selling, the MACD line is below zero or is starting to move down from it. Euro can also be sold at 1.0681, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0650 and 1.0616.

What's on the chart:

The thin green line is the key level at which you can place long positions in the EUR/USD pair.

The thick green line is the target price, since the quote is unlikely to move above this level.

The thin red line is the level at which you can place short positions in the EUR/USD pair.

The thick red line is the target price, since the quote is unlikely to move below this level.

MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.

Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decision based on the current market situation is an inherently losing strategy for an intraday trader.