Analysis of transactions and tips on trading the European currency

The first price test of 1.0843 came at a time when the MACD indicator went up a lot from zero, which limited the further upward potential of the pair. For this reason, I did not buy euros. After a short period of time, another test of 1.0843 at the time the MACD indicator was found in the overbought area allowed scenario No. 2 to be realized for the sale of the euro, which resulted in a drop in the pair by more than 20 points. Yesterday's Bundesbank report led to a fall in the euro, and the minutes of the Federal Reserve System only increased the pressure on the pair. Today's good reports on the index of business activity in the eurozone manufacturing sector, the index of business activity in the services sector and the composite PMI index of the eurozone can save the situation, but whether there will be enough buyers for a long time is a rather difficult question. The tough tone of American politicians regarding rates continues to support the dollar. As for the intraday strategy, I will rely more on implementing scenarios No. 1 and No. 2.

Buy signal

Scenario No. 1: today, you can buy euros when the price reaches 1.0833 (the green line on the chart) with the aim of rising to the level of 1.0861. At 1.0861, I plan to exit the market and sell euros in the opposite direction, counting on a movement of 30-35 points from the entry point. It is possible to count on the growth of the euro today only after very good data on the eurozone. Important! Before buying, ensure the MACD indicator is above the zero mark and is just starting to grow from it.

Scenario No. 2: I'm also going to buy euros today in the case of two consecutive price tests of 1.0822 at a time when the MACD indicator will be in the oversold area. This will limit the pair's downward potential and lead to an upward reversal of the market. We can expect an increase to the opposite levels of 1.0833 and 1.0861.

A sell signal

Scenario No. 1: I plan to sell euros after reaching the level of 1.0822 (the red line on the chart). The target will be the 1.0795 level, where I'm going to exit the market and buy immediately in the opposite direction (counting on a movement of 20-25 points in the opposite direction from the level). The pressure on the pair will increase in case of an unsuccessful consolidation in the area of the daily maximum. Important! Before selling, make sure that the MACD indicator is below the zero mark and is just beginning its decline from it.

Scenario No. 2: I'm also going to sell the euro today in the case of two consecutive price tests of 1.0833 at a time when the MACD indicator will be in the overbought area. This will limit the upward potential of the pair and lead to a downward reversal of the market. We can expect a decline to the opposite level of 1.0822 and 1.0795.

Chart Explanation:

Thin green line – entry price for buying the trading instrument.

Thick green line – the estimated price where you can set Take Profit or manually fix profits, as further growth above this level is unlikely.

Thin red line – entry price for selling the trading instrument.

Thick red line – the estimated price where you can set Take Profit or manually fix profits, as further decline below this level is unlikely.

MACD indicator: It is crucial to use overbought and oversold zones when entering the market.

Important: Beginner traders in the forex market should make market entry decisions very cautiously. It is best to stay out of the market before the release of important fundamental reports to avoid sharp fluctuations in exchange rates. If you decide to trade during news releases, always place 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 in large volumes.

Remember, successful trading requires a clear trading plan, like the one I have presented above. Spontaneous trading decisions based on the current market situation are initially a losing strategy for an intraday trader.