Analysis of transactions in the EUR / USD pair

The test of 0.9949 happened when the MACD line was just starting to move up from zero, which was a good reason to buy. This led to a price increase of more than 50 pips. No other signals appeared for the rest of the day.

Euro continued to grow, thanks to the statements made by ECB members Christine Lagarde and Fabio Panetta, as well as the Sentix investor confidence indicator for the Euro area. As for the speeches made by FOMC members Loretta Mester and Susan Collins, they did not affect the market.

There are no important statistics scheduled to be released in Europe today, so investors will have to rely on the September retail sales data and speeches of Bundesbank and ECB representatives. Even so, it is likely that euro's growth will be limited and the bullish trend will start to slow down sharply. FOMC member Loretta Mester is expected to comment in the afternoon, followed by the NFIB's report on small business optimism. The latter is unlikely to support dollar, so EUR/USD will trade within the side channel.

For long positions:

Buy euro when the quote reaches 1.0019 (green line on the chart) and take profit at the price of 1.0079. But growth is unlikely to occur today, so be careful with buying at the highs. Nevertheless, remember that when buying, the MACD line should be above zero or is starting to rise from it.

Euro can also be bought at 0.9986, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.0019 and 1.0079.

For short positions:

Sell euro when the quote reaches 0.9986 (red line on the chart) and take profit at the price of 0.9929. Pressure will return after hawkish statements from Fed representatives, although at best only a small correction can be seen. Take note that when selling, the MACD line should be below zero or is starting to move down from it.

Euro can also be sold at 1.0019, however, the MACD line should be in the overbought area, as only by that will the market reverse to 0.9986 and 0.9929.

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.