Analysis of transactions and tips for trading EUR/USD

The test of 1.0656 occurred when the MACD line was already far from zero, so the upside potential was limited. Sometime later, there was another test, but this time it was at 1.0630 and the market signal was to sell. But since the MACD was also far from zero, the price decrease was not very strong.

Although euro fell on Friday after Germany reported a decline in its producer price index, buyers were able to offset the fall due to the closing of many positions at the end of the week. Speeches of FOMC members Michelle Bowman and Thomas Barkin also did nothing to help dollar in the afternoon.

Today, apart from the Bundesbank report and the eurozone consumer confidence indicator, there is nothing that will have a significant impact on the market. Thus, it is likely that EUR/USD will rise. In the afternoon, there are no statistics at all, so expect a decrease in volatility and trading volume, which will lock the pair in a horizontal channel.

For long positions:

Buy euro when the quote reaches 1.0703 (green line on the chart) and take profit at the price of 1.0729. Growth will occur if economic data for the eurozone 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 1.0679, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0703 and 1.0729.

For short positions:

Sell euro when the quote reaches 1.0679 (red line on the chart) and take profit at the price of 1.0640. Pressure may return at any moment, especially considering the current trend. 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 1.0703, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0679 and 1.0640.

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.