Analysis of trades and trading tips for the euro
The price test at 1.0859 occurred when the MACD indicator had moved significantly below the zero mark, limiting the pair's further downside potential. For this reason, I did not sell the euro. ECB President Christine Lagarde's speech provided little support for risky assets yesterday. At the same time, traders interpreted the comments from Federal Reserve representatives as a reason to buy the US dollar, though the impact was fairly mediocre. Today, aside from the Bundesbank's monthly report, nothing is significant in the first half of the day, so the pair might continue trading within a sideways channel, maintaining a good prospect for further growth in line with the upward trend. Therefore, buying on declines will be the most attractive option today. As for the intraday strategy, I will rely more on implementing scenarios #1 and #2.
Buy Signal
Scenario #1: Today, you can buy the euro when the price reaches around 1.0871 (the green line on the chart), with a target of rising to 1.0915. At 1.0915, I plan to exit the market and also sell the euro in the opposite direction, expecting a movement of 30-35 points from the entry point. Today, you can count on the euro's growth as part of the ongoing upward trend. Important! Before buying, ensure the MACD indicator is above the zero mark and starting to rise.
Scenario #2: I also plan to buy the euro today in case of two consecutive tests of the 1.0855 price when the MACD indicator is in the oversold area. This will limit the pair's downside potential and lead to an upward market reversal. You can expect a rise to the opposite levels of 1.0871 and 1.0915.
Sell Signal
Scenario #1: I plan to sell the euro after reaching 1.0855 (the red line on the chart). The target will be the 1.0815 level. I plan to exit the market and buy immediately in the opposite direction (expecting a movement of 20–25 points in the opposite direction from the level). The pressure on the pair will increase if it fails to consolidate around the daily high. Important! Before selling, ensure that the MACD indicator is below the zero mark and starting to decline from it.
Scenario #2: I also plan to sell the euro today in case of two consecutive tests of the 1.0871 price when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward market reversal. You can expect a decline to the opposite levels of 1.0855 and 1.0815.
What the chart shows:
Thin green line – entry price at which you can buy the trading instrument.
Thick green line – the approximate price where you can place Take Profit or independently fix profits, as further growth above this level is unlikely.
Thin red line – entry price at which you can sell the trading instrument.
Thick red line – the approximate price where you can place Take Profit or independently fix profits, as further decline below this level is unlikely.
MACD Indicator: When entering the market, following the overbought and oversold zones is important.
Important: Beginner forex traders should be cautious when making market entry decisions. It is best to stay out of the market before releasing significant fundamental reports to avoid getting caught in 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 money management and trade large volumes.
Remember, successful trading requires a clear plan like the one presented above. Making spontaneous trading decisions based on the current market situation is an initially losing strategy for an intraday trader.
