Analysis of transactions in the EUR / USD pair

A signal to buy emerged after EUR/USD hit 1.0936. However, the quote did not increase because the MACD line being far from zero limited the upside potential of the pair. Nothing interesting happened throughout the day, despite the release of data on Germany's wholesale price index and France's foreign trade balance. There was also no market reaction during the Eurogroup meeting and the Bundesbank's monthly report.

More active trading is expected today, but on the side of sellers. This is because very negative statistics from Germany and the eurozone could lead to a sell-off in the market. There will be other reports such as CPI from France and volume of industrial production in the eurozone, however, more attention will be given to business sentiment from Germany and the eurozone. ECB President Christine Lagarde also has a scheduled speech, but that may not affect the markets. The meeting of EU finance ministers is also unlikely to affect anything. During the US session, a report on producer prices and manufacturing will be released, but traders will most likely focus more on the upcoming Fed meeting. As such, there won't be record growth in dollar today, but the upside potential of euro will be limited.

For long positions:

Buy euro when the quote reaches 1.0995 (green line on the chart) and take profit at the price of 1.1052 (thicker green line on the chart). However, there is little chance for a rally today, unless the reports on Germany and the eurozone surprise in some way. Before buying, make sure that the MACD line is above zero or is starting to rise from it before taking long positions. It is also possible to buy at 1.0967, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0995 and 1.1051.

For short positions:

Sell euro when the quote reaches 1.0965 (red line on the chart) and take profit at the price of 1.0905. Weak data on the EU economy will bring back pressure in the market. Also, the Fed meeting this week will raise demand for dollar. But before selling, make sure that the MACD line is below zero, or is starting to move down from it. Euro can also be sold at 1.0995, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0967 and 1.0905.

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 decisions based on the current market situation is an inherently losing strategy for an intraday trader.